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Trading of agricultural products
Accountancy
Does trading of agricultural, livestock and forest products are included in the scope of AS-2 ?
Answers (3)
As per para 1(d) of AS 2 - Valuation of inventory, The standard should be applied in accounting of all inventory except producer's inventories of livestock, agricultural and forest products, mineral oils, ores and gases to the extent that are measured at net realisable value in accordance with well established practices in those industries. Hence, As per the above para, agricultural, livestock and forest products are excluded from the scope of AS 2
Mayur jhawar
As per para 1(d) of AS 2 - Valuation of inventory, The standard should be applied in accounting of all inventory except producer's inventories of livestock, agricultural and forest products, mineral oils, ores and gases to the extent that are measured at net realisable value in accordance with well established practices in those industries. Hence, As per the above para, agricultural, livestock and forest products are excluded from the scope of AS 2
Also if the business of the company is purchase of these assets and selling them?
Thread Starter
Atharv SankliyaAlso if the business of the company is purchase of these assets and selling them?
If the business is purchase and sales then they are not producers. Hence AS-2 is applicable.
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