Improvement of the evaluation method of reserves in accounting

Abstract

Introduction. The article deals with the main approaches to reserves valuation in accordance with the requirements of national accounting standards. The methods of stock assessment at different stages of their circulation are considered: on stage of admission, on balance sheet date and at the time of disposal.

Purpose. The article aims to study the improvement of inventory assessment methodology at different stages of their circulation to ensure the accuracy of accounting information about the cost of stocks.

The method (methodology). The study used the methods of theoretical and logical generalization, comparison method, method of analysis and synthesis, method of abstraction and modelling.

Results. The article deals with the main approaches to inventory valuation in scientific literature and legal acts. Enterprises can independently choose the most appropriate methods of inventory valuation depending on the established accounting policies. The number of stock valuation methods, on the one hand, provides ample opportunity to reflect the real value of inventories, and on the other hand, it may lead to a reduction in the reliability of accounting data if the inventory method is wrongly chosen.

The study found out that most methods of stock assessment are focused on the principle of historical cost and the correct calculation of financial results. It does not always take into account the need to reflect the real (fair) value of inventories, which may lead to a reduction in the reliability of inventory data and indicators of the property status report of the enterprise.

Part of stocks has industry-specific features. Thus, agricultural products, unlike other types of inventory, at initial recognition can be assessed at fair value, reduced by expected costs to sell. It is proposed to extend to the assessment of other types of stocks.