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I’m bit confused with this inventory valuation
Where we are valuing inventory at NRV or Cost which ever is lower, but it affects current year gross profit , even though cost is reduced for next yr.
The closing stock are sold during next year, So why are we adjusting that loss in the current year itself?
Because if the NRV is lower, then it is because of something that happened this year.
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Thank you so much Sir!
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