06-24-2007, 03:51 AM
While valuing inventories we should not include payments that are adjustable in future.
Withholding tax is adjustable in future against closing tax liability of the company. So it will not be added to the value of inventory.
Export rebate should be added to revenue and not deducted from inventories.
Withholding tax is adjustable in future against closing tax liability of the company. So it will not be added to the value of inventory.
Export rebate should be added to revenue and not deducted from inventories.