Treatment of closing stock

[imdad1]

listen keep it simple..

-everything which we hold on year end comes in Statement of Financial position( now dont use balance sheet word as it has been replaced by revised IAS-1) so thats why the stock which an entity holds at year end for instance June 30.20xx will be shown as current asset in statement of financial position

-everything which we expensed/used during the year comes in Profit and loss account thus the inventory we consumed is recorded as expense in p/l
and the method of computation is as follows

opening stock(value)=10,000
purchases(current year)=20,000

total availiable stock=30,000
lessStock value closing sotck(W.A basis)20,000
value of stock sold(bal)=10,000

THx and regards
IASB-ACA
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by alpha</i>
<br />Hi,
I have a query.
Why closing stock is considered in both Profit & Loss A/C and balance sheet.
Regards.
Bipin
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