Valuing and accounting for inventories correctly

Contents of the balance sheet item "Inventories"

Inventory valuation, inventory balancing

• General requirements.
• Special features of the transfer of economic ownership (retention of title, transfer by way of security, goods on consignment §§ 383 ff. HGB, goods in transit, repurchase option, pre-sale rights, restriction of the right of realization, retention of risks of changes in value).
• Time of revenue recognition and derecognition of inventories.
• Inventory procedures and inventory systems.
• Completeness and accuracy of the inventory.
• Risks and stumbling blocks in stocktaking.
• Inventory observation as part of the final audit.
• Fixed values.

Treatment under commercial and tax law

• Connection between commercial and tax law.
• General valuation principles.
• Special valuation principles: Initial measurement, subsequent measurement, simplification method, average and group measurement, fixed value formation, consumption sequence method.
• Loss-free valuation.
• Recognition of contingent losses from construction contracts.
• Provision for impending losses from pending sales and procurement transactions.
• Accounting for deferred taxes.
• Excursus: Long-term construction contracts.

Recognition of advance payments

• Advance payments of fixed and current assets.
• Recoverability and amortization of advance payments.

Selected case studies from the portfolio and inventory area

Special features according to IAS/IFRS

• Special features in connection with measurement (IAS 2).
• Revenue recognition (IFRS 15).

Key figures in the area of inventory valuation and inventory accounting