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What would be the accounting treatment for demo inventory or stock held for trial basis? Capitalized as fixed asset or included in closing inventory?

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تاريخ النشر: 2014/09/18
Saleh Al-kasrawi
من قبل Saleh Al-kasrawi , general accountant , Dayton consulting L.L.C

   well its going to be  considered as a reduction to the  related equipment  cost

 but what u r talking about is not  the acquisition of a new equipment and making some demo inventory to check the equipment efficiency u r talking about having a new product buying some goods to try them in the market i believe there is no accounting treatment for such a thing and the goods bought will be disclosed as inventory no more no less the intention to see if its going to be successful product or not is not considered as a unique type of inventory 

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