Should valuation of wine stock include unpaid duty? | AccountingWEB

Should valuation of wine stock include unpaid duty?

One of my clients (a wine trader) had year end stock in a bonded warehouse. The valuation obviously includes cost plus freight, storage and duty paid up front (on beers). Duty on the wine is not payable until it leaves the warehouse apparently. Question is - should the stock valuation include unpaid duty on the basis that it was almost certain to be incurred and the event causing it (ie importing from France) had already happened?

If so, the double entry would be Debit Stock and Credit Accruals, but can you include future costs in the stock value? Does the standard permit this?


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paulwakefield1 |


Steve Kesby |
Steve Kesby's picture

Cigarettes in a bonded warehouse

3569787 |
3569787's picture

Thanks all

cfield |
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