CC BY
1
UDC 657.422.6
Bohdaniuk O. V., PhD associate professor department of statistics and economic analysis National University of Life and Environmental Sciences of Ukraine
Ukraine, Kiev
CLASSIFICATION AND EVALUATION OF ENTERPRISE
INVENTORIES
Annotation: The article considers the economic essence of the company's stocks. Their classification and evaluation are studied.
Key words: current assets, inventory, raw materials, accounting.
In the process of creating a successful enterprise, its leader faces a number of issues, including the issue of competent inventory formation and management. The main task of inventory management is to invest in them in such a way as to achieve strategic business goals.
Inventories are one of the main components of current assets of the organization. The following assets are accepted as inventories:
- used as raw materials in the production of products intended for sale (performance of works, provision of services);
- which are intended for sale;
- which are used for the management needs of the organization [4].
Inventories are products of industrial and technical purpose, consumer
goods that are at different stages of production and circulation and other goods that are waiting to enter the process of industrial or personal consumption [5].
In a broad sense, inventories are classified in three types:
1. Inventories.
2. Incomplete production.
3. Finished products.
Inventories include raw materials and materials, purchased semi-finished products and components, structures and parts, fuel, packaging and packaging materials, waste, spare parts and other materials.
When raw materials are transformed into a final product with the subsequent movement of this product to the final consumer, two main types of stocks are created: work in progress and finished products. Based on this, inventories are inventories that are in companies of all branches of material production and are intended for industrial consumption [4].
National Accounting Standards provide a number of valuation techniques that can be used to reflect certain types of inventories in accounting and financial reporting. These methods should be reviewed in more detail and the feasibility of their use in enterprises should be analyzed. Today there are 5
methods of inventory valuation: the method of identified value, the method of weighted average cost, the method of FIFO, the method of standard costs and the method of retail price [2].
The most accurate method is the identified cost method. Under this method, inventories can be written off at cost. This method is used when stocks are purchased for resale to order (e.g., aircraft construction) or for are indispensable other goods (cars, jewelry, real estate). To use this method, it is necessary to set a price (significant cost) for each unit.
For companies that use a large number of products, the most convenient method is the weighted average cost. This method should be used in conditions of instability and inflation [1, p. 23]. The peculiarity of the FIFO method is that stocks are written off in chronological order, the first stocks are taken first, this method is used to prevent stock damage.
Estimation of stocks at regulatory costs is the application of the unit cost of a unit of production (works, services), considering the normal levels of use of stocks, labor, production capacity and current prices. Cost and price norms in the regulatory framework are reviewed and updated to ensure that regulatory costs are as close as possible to actual costs.
The selling price method is used by retailers, it uses the average percentage of the trade margin on the product. The value of goods sold is defined as the difference between the retail value of goods sold and the size of trade margins on them [3, p. 117]. The use of the proposed valuation technique when writing off inventory will allow managers to provide additional information important in the formation and analysis of pricing policy of individual products, as well as for the overall assessment of financial results of management [2].
Each method has its advantages and disadvantages, according to UAS 9, each company chooses one of the methods, but it is extremely important to choose the method that will allow to properly assess the results of the enterprise. Since the choice of the most appropriate method of inventory valuation for each enterprise depends on a large number of factors that affect the activities of each individual enterprise and the results of this activity, it cannot be said that there is a certain method that deserves all companies to prefer it.
It can be concluded that inventories represent a significant share in the current assets of the enterprise and their surplus or deficit can lead to failure to achieve its strategic goals, deteriorating financial condition, so they require careful control, which is carried out in accordance with the company's inventory management system. It is also worth noting that there are many classifications of inventories today. The classification of stocks depends on the science in which they are considered, on what industry activity the company belongs to, is a manufacturer or intermediary in the sale of goods, the purpose of the stock in production, the time of stock, and other factors.
References:
1. Гуренко Т. EKOHOMi4Ha сутшсть та ощнка 3anaciB. Бухгалтерiя в сшьському господарствi. 2011. № 2. С. 22-27.
2. Ковтуненко Ю. В., Васалатш Т. М. Аналiз методiв оцiнки 3anaciB при ix вибуттi. URL: https: //economics. net. ua/files/science/obHk/2015/47. pdf
3. Козак В. Г. Економiчнa сутнiсть cnoco6iB i B^AiB оцiнок у бухгалтерському облiку: ix мета та функцii. Економiкa АПК. 2007, № 2. С. 115-122.
4. Мiжнaродний стандарт бухгалтерского облшу 2 (МСБО 2). URL: http: //zakon3 .rada. gov.ua/laws/show/929_021
5. Про бухгалтерський облiк та фшансову звiтнiсть в Укрaiнi: Закон Украши вiд 16.07.1999 р. № 996 - XIV. URL: http: //zakon4 .rada. gov.ua/laws/show/996-14.
