Q. Trial balance prepared and you find that for whatever reason, partially complete inventory valued at £100k cost is now only able to be sold for £80k less £5k of costs to complete.

Does anyone know what the correct entries are to account for a reduction in inventory valuation?

I appreicate that I'll have to Cr. Inventory by £25k but what's the name of the expense account(s) that I would be Dr. this to?

A client has a caravan salvage business. Every scrap or damaged caravan can be treated as unique as they all have different damage.

The client pays the insurance company for the caravan and then sells parts from those caravans as and when a customer comes looking for a particular part. Some caravans have a lot of resalable parts and others don't.

Hi I face unique problem, Per IAS 2, Inventory is the stock of consumables directly attributable to COS. If i correctly understnad then how the deal with followings?

1. But what will happen if a company has large amount ( in value) of advertsing and promotion stuff ( more than 1 yr stock). But in order for meeting the current asset definition this stock must be consumed within 1 yr or normal operating cycle? I worked for pepsi in middle east; they used to show this in Curent Asset-inventory accompanied by a note segregating

Hi

 I am in the process of setting up a perpetual inventory procedure at a new warehouse we are currently using.

 Has anyone got any ideas on where to start or any advice would be greatfully recieved.

 Thanks