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What are inventory losses?
An inventory loss occurs when an item is intended for sale is not sold. Losses can happen for a number of reasons. Sometimes stock becomes obsolete or outdated before it is sold. Finally, a physical inventory may simply come up short with no known cause for the missing items or raw materials.
What is inventory gain or loss?
Inventory gains are registered from an appreciation in the value of inventory held by a company. Refining inventory gains are a result of an appreciation in the price of crude oil in the company’s inventory. OMCs purchased crude oil in April when the price of Brent crude hit a low of $19.33 per barrel.
Is IOC a loss?
State-owned oil refining and marketing company Indian Oil Corporation (IOC) posted a record consolidated net profit of Rs 21,762 crore for the fiscal year 2020-21 (FY21) against a loss of Rs 1,876 crore the year before. This is the highest annual profit ever reported by the firm.
Is Indian oil a loss making company?
Energy is the most vital for the growth of an economy and petroleum is an important constituent of energy. However, petroleum industry in India is a loss making industry.
How do you report inventory losses?
If the amount of the Loss on Write-Down of Inventory is relatively small, it can be reported on the income statement as part of the cost of goods sold. If the amount of the Loss on Write-Down of Inventory is significant, it should be reported as a separate line on the income statement.
How do you record inventory loss?
Record inventory losses by increasing your Shrinkage Expense account and decreasing your Inventory account. Debit your Shrinkage Expense account and credit your Inventory account. To adjust for shrinkage, create a journal entry that looks like this: Let’s say you lose $1,000 of inventory to shrinkage.
Is Iocl profit or loss?
Financials
| Profit & Loss account of Indian Oil Corporation (in Rs. Cr.) | Mar 21 | Mar 18 |
|---|---|---|
| Total Expenses | 352,892.68 | 394,889.04 |
| Profit/Loss Before Exceptional, ExtraOrdinary Items And Tax | 29,715.65 | 32,564.28 |
| Exceptional Items | 0.00 | 0.00 |
| Profit/Loss Before Tax | 29,715.65 | 32,564.28 |
Who is the owner of Indian Oil?
Government of India
Ministry of Petroleum and Natural Gas
Indian Oil Corporation/Parent organizations
Why the oil companies are in loss?
The spread of the coronavirus and the lockdowns meant to slow it caused massive slowdowns in economic activity, with international air travel coming to a near standstill. This dampened demand and as oil producing nations didn’t immediately cut production, crude prices plummeted.
How do oil companies make money in India?
The OMCs pay trade parity price to refineries when they buy petrol and diesel, and import parity price in the case of PDS Kerosene and domestic LPG. The oil marketing companies are currently sourcing their products from the refineries on import parity basis which then becomes their cost price.
Is inventory loss an expense?
When the inventory loses its value, the loss impacts the balance sheet and income statement of the business. Next, credit the inventory shrinkage expense account in the income statement to reflect the inventory loss. The expense item, in any case, appears as an operating expense.
Why did Indian Oil Corp (IOC) report massive ₹ 5185 crore loss?
Updated: 24 Jun 2020, 07:03 PM IST PTI NEW DELHI : State-owned Indian Oil Corp (IOC) on Wednesday reported a massive ₹ 5,185 crore loss in the March quarter after a slump in oil prices resulted in record inventory losses for the company.
Why did Maruti Suzuki record inventory loss of 14692 crore?
The loss was primarily due to inventory losses and lower refining margins. The company recorded an inventory loss of ₹ 14,692 crore in the fourth quarter of 2019-20 as compared to an inventory gain of ₹ 1,787 crore in the same period a year back, he said.
How did Indian Oil perform in fy19-20?
“Our refining throughput for FY 19-20 was 69.419 million tonnes and the throughput of the Corporation’s countrywide pipelines network was 85.349 million tonnes during the year,” he added. For the fourth quarter of FY20, Indian Oil’s product sales volumes, including exports, stood at 22.206 million tonnes.
What is the difference between inventory loss and gain?
An inventory loss is recorded when a company buys raw material at a particular price but by the time it is shipped and processed into fuel, rates have fallen. Since retail prices are benchmarked to prevailing international prices, an inventory loss is recorded. In case of reverse, an inventory gain is booked.