Features of the reflection of inventories in the financial statements

• Main Authors: N. V. Moskalenko, E. S. Vasyukova, D. O. Chestnykh
• Format: Article
• Language: Russian
• Published: Russian Academy of Entrepreneurship 2020-11-01
• Series: Путеводитель предпринимателя
• Subjects: inventories; accounting of inventories; inventory; accounting
• Online Access: https://www.pp-mag.ru/jour/article/view/1483

The article reveals the concept of inventories and their role for the progressive development of an enterprise. It was revealed that incorrect and inaccurate reflection of inventories in the organization’s accounting leads to a deterioration in the financial condition of the enterprise, and irrational use — to financial losses. The key features of the reflection of inventories in the financial statements, as well as the features of the reflection of the results of their inventory are revealed. It is concluded that effective financial management at the enterprise is based on the correct reflection of inventories in the financial statements.