Stock valuation

Stock valuation

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Hi

Would like some advice on how to value the stock? 

We bought some stock from overseas, and it was normally invoiced in USD, but this time, the supplier invoiced us in GBP instead, however we paid out in USD by mistake, and after consideration, they converted it over there, and we paid the difference but it resulted a 3% extra in GBP ? 

When we come to value the stock, do we value at the invoice GBP amount, or the actual total GBP paid out including bank charges, being that's the actual costs incurred? 

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By Scriptic
01st Nov 2015 16:52

The Latter

The "actual total GBP" is the coat and should be therefore be the valuation. In the unlikely event that the extra 3% meant that the goods could not be disposed of at or above the cost price then a revised lower valuation would have to apply instead.

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Replying to Adam12345:
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By Smalltalk
01st Nov 2015 17:23

thankyou

Scriptic wrote:

The "actual total GBP" is the coat and should be therefore be the valuation. In the unlikely event that the extra 3% meant that the goods could not be disposed of at or above the cost price then a revised lower valuation would have to apply instead.

 

thank you very much for your reply.

 

 

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