How are inventories valued according to Indian Accounting Standards?

Inventories are valued at the lower of cost and Net Realizable Value (NRV). Cost includes purchase price, conversion costs, and other direct costs. NRV is the estimated selling price less costs to complete and sell.

What is the main difference between SLM and WDV depreciation?

SLM charges equal depreciation each year. WDV charges higher depreciation in early years on a reducing balance. Both methods allocate the same total depreciable amount over the asset's useful life.

Knowledge Base Foundation Paper 1 Accounting Chapter 5Inventories

References

Chapter Source Notes
ICAI BOS
ICAI Study Material
MTP References
Previous Year Questions
RTP References

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Inventories and Depreciation/Amortization: A Foundation Accounting Guide

Kartavvya CA Expert Team

Updated on 5/15/2024

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Inventories and Depreciation/Amortization: A Foundation Accounting Guide — CA Knowledge Base | Kartavvya