What is the purpose of inventorying
In what cases is an inventory
The company itself decides how much inventory will be needed in the reporting period and appoint a date when they will be held. During each inventory is the identification of the actual availability of material values and other property, controlled by its safety and compliance with the operating conditions detected unaccounted and unused property and checked the real value of the property which is on balance.
Of these basic inventory tasks, it is clear that an unscheduled audit should be conducted additionally in the following cases:
- when material values and property are transferred to a lease or an enterprise changes the form of ownership and is transformed into a joint-stock company;
- before the annual financial statements are prepared;
- when a materially responsible person changes or a new one is appointed;
- when facts of theft and damage to property were discovered;
- when the property has suffered in the course of a fire or other natural disaster;
- when there is a bankruptcy or liquidation of the enterprise.
What is subject to inventory
In the process of inventory checked and accounted for all property on the balance sheet, regardless of where it is. In addition, subject to verification of all types of financial liabilities, including payables, Bank borrowings and reserve funds. Checks and other types of property that do not belong to the company, but are reflected in the accounting records in Memorandum accounts, for example, as well as other property, for any reason not previously considered.
There are two types of inventory – full and partial. The procedure is regulated by the Federal law "On accounting", regulations on accounting and reporting in the Russian Federation, methodological instructions No. 49, approved by the Ministry of Finance of the Russian Federation in 1995.
Who conducts an inventory
Before conducting the inventory, the head of the company should issue an order that defines the dates, and assigned by the inventory Commission. In its composition enter the head of the structural division, the chief accountant or his Deputy, financially responsible person, as well as experts, who understand technology, storage of inventory or employees can assess the condition of fixed assets. Well, if the Committee will work with economists and marketing professionals. The Chairman of the Commission is appointed by the head of the enterprise or one of his deputies.