Selling expenses and selling cost

Financial Reporting

To determine NRV, we have to reduce the estimated selling costs. But when we are determining the cost of inventory we are not considering the selling expenses. If a question ask to find the NRV and cost of a material and selling expenses are also given for the computation, should we reduce that amount from NRV and also should ignore while computing the cost of the material? Whether the selling expense and selling cost are same? Video Details ------------- Ind AS - CA Final Ind AS 2 Inventories #21. Illustration 10,11, 12 & 13: Conversion Cost & NRV

Abhijith K B

CA Final

★ 5

27-Jul-24 20:04

285

Answers (2)

What we deduct is the expenses incurred to complete the sale. In a sense both selling cost and selling expense would refer to the same.

CA Suraj Lakhotia

Admin

31-Jul-24 14:43

Ok sir understood

Thread Starter

Abhijith K B

CA Final

★ 5

31-Jul-24 14:48