Methods of Valuation of Inventory - Ind AS - Indian Accounting Standards - Companies Law

..... whether they have been bought or produced. However, specific identification of costs is inappropriate when there are large numbers of items of inventory that are ordinarily interchangeable. In such circumstances, the method of selecting those items that remain in inventories could be used to obtain predetermined effects on profit or loss. If Products are interchangeable - The cost of inventories, shall be assigned by using the first-in, first-out (FIFO) or weighted average cost formula. An entit .....

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Methods of Valuation of Inventory - Ind AS - Indian Accounting Standards - Companies Law

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..... may be calculated on a periodic basis, or as each additional shipment is received, depending upon the circumstances of the entity. Techniques for the measurement of the cost of inventories , such as the standard cost method or the retail method , may be used for convenience if the results approximate cost. Standard costs take into account normal levels of materials and supplies, labour, efficiency and capacity utilisation. They are regularly reviewed and, if necessary, revised in the light of .....

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Methods of Valuation of Inventory - Ind AS - Indian Accounting Standards - Companies Law

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