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A Company follow average stock valuation since last 5 years, now company decide to change valuation method to FIFO system, what adjustment required?

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Question added by Murtaza Kalabhai , Accountant , Al Raj Mobile Phones Trading L.L.C
Date Posted: 2015/08/09
Abdur Rahim
by Abdur Rahim , Head Accountant , MAPCo. LLC

Your question is technical.

Adjustment need to be made opening balance of inventory i.e each inventory item held should be recognised at the cost. A revaluation reserve created where credit effect of any upwards revaluation recorded and devit effect of any downward revaluation recorded.A disclosure required in financial statementsIf i am wrong please correct  

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