Cash basis for stock?

[Hunnie]

Hello,
I am wondering if anyone can help with a query regarding the treatment of stock purchased in the year.
It used to be only treated as an expense when the stock was sold and unsold stock remained as an asset in 'closing stock'
Am I right that now we can include all stock as an expense in the year of purchase even if unsold that year?

Also that a one off adjustment of the 'closing stock' from last year is that it can be added to this years expenses?

I have posted this here instead of the accounts forum because this seems peculiar to retail.

Thank you
regards
Hunnie

 

[Scalloway]

As far as I can see you are correct. See page 3 of this guide

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/323586/hs222.pdf

 

[Hunnie]

Thank you Scalloway.
I do hope this is right as it seems so much easier.
Although I have seen articles about the new cash basis they don't usually explain this aspect of it.

regards
Hunnie