A company hires sports equipment for use on holidays (clothing & equipment).
At what value should this be included in the accounts? Cost or replacement value?
Should it still be called "stock"?
AB
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Hmmm
Probably depends on the facts.
If a separate stock of hire goods is maintained then depending on the life to the business they could even represent fixed assets. Otherwise its the normal cost or net realisable value - which may well be the case - NRV - as the clothing and equipment could presumably only be sold as second-hand.