GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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AS-1
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AS-2
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AS-3
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AS-4
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Detailed explanation-1: -This accounting standard is applicable to all companies irrespective of their level (Level I, II and III). This standard prescribes the accounting treatment for inventories and sets the guidelines to determine the value at which the inventories are carried in the financial statements.
Detailed explanation-2: -The objective of as 2 inventories valuation This Standard deals with cost determination and its subsequent identification, including any write-down to net realizable value, as an expense. It also offers instructions on the cost formulas used for inventory distribution of costs.
Detailed explanation-3: -Inventories are measured at the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.