Stock Value Adjustment

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  • Accounting Standard - Provides rules on how stock should be valued
  • Stock should be valued at the lower of cost or net realisable value
  • Cost = Original purchases cost of the stock.
  • Net realisable value = Amount stock is expected to be sold for take away any direct selling expenses such as Carriage/Commission
  • Net Realisable Value usually more unless damaged goods/Out of date
  • Rule…


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