Stock Value Adjustment

SSAP 9

• Accounting Standard - Provides rules on how stock should be valued
• Stock should be valued at the lower of cost or net realisable value
• Cost = Original purchases cost of the stock.
• Net realisable value = Amount stock is expected to be sold for take away any direct selling expenses such as Carriage/Commission
• Net Realisable Value usually more unless damaged goods/Out of date
• Rule…