3 Obsolete stock: There is a danger when finished goods are held in stock until demanded by customers that this stock becomes obsolete and hence unsaleable. Although this is not a reason for holding stock, it is nevertheless one reason why stock may be held and a danger to be recognised in considering the extent of stockholding. In valuing stock therefore it is essential to bear this in mind and value stock at its sale value (if less than cost), revaluing when necessary. This will be considered further in the discussion of control procedures.