As per which accounting concept an asset should be valued at ‘Lower of net realizable value’ or ‘Fair value’ ?
The accounting concept that states that an asset should be valued at "Lower of net realizable value" or "Fair value" is the Conservatism concept, also known as the Prudence concept. This concept requires that a cautious approach should be taken in the face of uncertainty, and that losses and expenses should be recognized when they are probable, while gains and revenues should be recognized only when they are certain. In the case of an asset, if the asset's carrying value on the balance sheet exceeds its net realizable value or fair value, the asset must be written down to the lower value. For example, if a company has inventory that has a carrying value of $10,000, but its net realizable value is only $8,000, the company must write down the inventory to $8,000, as per the Conservatism concept. This ensures that the company recognizes the potential loss in value of the inventory, even if it has not yet been sold.
The Tamil Nadu government has extended the ban on which products for one more year due to their content of tobacco and nicotine?
What is the estimated tiger population in India, as per the report released by the Minister of State for Environment, Forest and Climate Change on Globa...
Thanumalayan Temple is dedicated to the Trinity of God, it is located at which place?
Recently Asian King Vulture Conservation “JATAYU CONSERVATION AND BREEDING CENTRE” Inaugurated in which state.
In which city will the IBSA Blind Football Intercontinental Cup 2023 be organized?
Which Indian state was ranked at the top in terms of overall environmental performance in the annual data compendium released by Centre for Science and ...
The Reserve Bank of India has proposed to increase the payment limit for UPI Lite to how much?
Which Vijayanagara ruler took the title of 'VedaMarga-Pratishapaka'?
Idukki dam was often in the news, is built on which of the following rivers?
Who is the founder of “Jainism”?