https://www.taxtmi.com/article/detailed?id=678 Inventory carried forward from prior periods must be valued for the current accounting period by reference to the carried forward book value as the period "cost" and compared with current market value, adopting whichever is lower. This prevents booking unrealized or contingent gains arising from using historical acquisition costs and aligns with prudence, matching, and Schedule VI's requirement that profit and loss reflect results for the period; disclosures should state the valuation basis and auditors must guard against recognizing unearned profits on old stock. en-us Sat, 13 Feb 2010 00:00:00 +0530 Sat, 13 Feb 2010 12:40:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=678 Inventory carried forward from prior periods must be valued for the current accounting period by reference to the carried forward book value as the period "cost" and compared with current market value, adopting whichever is lower. This prevents booking unrealized or contingent gains arising from using historical acquisition costs and aligns with prudence, matching, and Schedule VI's requirement that profit and loss reflect results for the period; disclosures should state the valuation basis and auditors must guard against recognizing unearned profits on old stock. Articles Income Tax Sat, 13 Feb 2010 00:00:00 +0530 https://www.taxtmi.com/article/detailed?id=678