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How Should Inventory Items Be Listed On The Balance Sheet?

2011/1/4 17:21:00 71

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Inventories should be listed under the current assets of balance sheet assets.

Due to its fluidity second only to receivables and prepayments, it should be listed in

flow

After receivables and prepayments in the assets.

The inventory items in the balance sheet should include:

Finished products, products, materials on the way, raw materials, packaging, etc.

Low value

Consumables, self-made semi finished products, inventory commodities, commissioned processing materials, consignment goods, production costs, labor costs, and stock price depreciation (as subtractions), as well as material procurement, material cost differences, the use of retail price accounting for inventories of enterprises, should also be added "commodity purchase price difference" subjects, also included in inventory items.

All these changes will affect the inventory changes.

The scope of inventory also needs to be explained in the following aspects:

(1) the attribution of goods sold on commission basis.

The sale of consignment goods should be handled as a client's inventory before it is sold. However, in order to enable the trustee to strengthen the management of the consignment goods, the trustee shall reflect the goods entrusted to him on the balance sheet in the inventory.

It should be noted that the trustee should record the goods entrusted to sell on behalf of the entrusted seller in the inventory of the balance sheet. The two are recorded in the inventory items of the asset side, but only the record of the goods sold on the Commission is not recorded at the same time as the assets side and the debtor.

(2) processing of goods on the way.

For sellers who have confirmed sales according to the sales contract agreement and have not yet shipped them to the buyers, the goods that have already been received by the buyer, but have not yet received the invoices, such as the seller's invoices, and the goods on the road which the buyer has confirmed to be purchased and not yet arrived, should be treated as the buyer's inventory.

(3) do not deal with the purchase of the goods agreed upon for future purchases.

(4) all kinds of materials reserved for various projects are not accounted for as inventories.

(5) special reserves and special reserve assets under state instructions are not part of the enterprise's inventory.

(6) turnover materials are also in stock.

Turnover materials refer to materials that enterprises can use repeatedly and gradually pfer their value but do not maintain their original form as fixed assets, such as packaging and low value and easily consumed products.

In accounting, generally set up "turnover materials - packaging" and "turnover materials - low value and easy to consume goods" subjects accounting, can also be set up according to the specific circumstances of "packaging" and "low value and easy to consume goods" subjects accounting.