New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

      ICDS II deals with which of the following

    aspect?
    A Valuation of Inventories Correct Answer Incorrect Answer
    B Accounting Policies Correct Answer Incorrect Answer
    C Construction Contracts Correct Answer Incorrect Answer
    D Tangible Fixed Assets Correct Answer Incorrect Answer

    Solution

    ICDS II (Income Computation and Disclosure Standards II) focuses on providing guidelines for the valuation of inventories. Inventories refer to goods held by a business for the purpose of resale, production, or consumption. This standard ensures that inventories are valued appropriately in a consistent manner to reflect their true economic value. Proper valuation of inventories is crucial for determining accurate profits and financial positions in a business. The standard outlines principles and methods for determining the cost of inventories, including factors such as purchase cost, production cost, and overhead allocation. This helps in maintaining consistency and transparency in financial reporting across different businesses.

    Practice Next

    Relevant for Exams: