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The recognition and measurement of enterprises and institutions and inventory

Author: ZhangZhongBiao From: www.yourpaper.net Posted: 2010-05-26 12:18:51 Read:
Keywords: paper confirm stock companies and institutions inventory and measurement
Abstract: the with the establishment of socialist market economy and the continuous improvement and institution reform, new ideas, a series of new problems put forward in accounting.I know the enterprises and institutions to confirm the inventory and measurement to talk about a bit shallow.With the establishment of socialist market economy and the continuous improvement and institution reform, new ideas, a series of new problems put forward in accounting.Understanding below I enterprises and institutions and initial measurement definition, to inventory and inventory valuation of final confirmation and talks about a bit shallow.
1 the definition of inventory
The definition of "accounting standards for Enterprises No. l a given inventory" stock is held by an enterprise in the daily activity for the sale of finished goods or commodities, in the production process of products, consumption in the production process or the provision of services in the process of materials and materials.According to the definition criterion is given for the.The most basic characteristics of stock is the ultimate goal of enterprise holding inventory to sell (whether direct sale, or subject to further processing can be sold) rather than for personal use.This put the inventory and fixed assets and other long-term assets clearly differentiated.The inventory includes raw materials, products, semi-finished products, finished products, goods and packing materials, consumables, consignment goods.But for the construction of the project of fixed assets and reserves of various materials, although belonging to the same material, but its for the construction of the project fixed assets, so it belongs to the engineering materials, it does not meet the definition of inventory.The special reserve also does not meet the definition of inventory, so it does not belong to the category of inventory.
Provisions of the accounting system in institutions, institutions of the inventory refers to units used in business activities and other activities in the process or to sales and reserves of various assets, including material, finished goods.A range of materials including inventory materials and not up to the standard for fixed assets tools, low value consumables.Institutions buy with office supplies can be listed as expenditure directly in the purchase, not as inventory at.Institutions of the finished product is self-explanatory unit production and experience the income stock finished product and business units of labor results the same as finished products accounting.
Confirm 2 inventory
"Enterprise Accounting Standards No. 1 inventory" inventory confirmed conditions two.
1) the inventory contains economic interests are likely to flow enterprise.The basic characteristics of assets is expected to bring economic benefits to the enterprise.Inventory is an important asset, its key is to determine whether it is likely to bring economic benefits to the enterprise or the economic interests are likely to flow enterprise.Generally speaking, ownership is an important sign to confirm the inventory.Consignment of goods because of its ownership does not transfer, so it is a part of enterprise inventory.From the definition criterion is given the final purpose of the inventory that enterprises hold inventory to sell, so the inventory and fixed assets to distinguish.According to the accounting system in institutions, institutions holding inventory is the ultimate aim is to their own consumption or sales, which shows some institutions holding inventory is its own consumption, not for sale.
2) the cost of inventory can be measured in a reliable way.Cost can be measured reliably is the basic condition of an asset confirmation.Only obtain conclusive, evidence that the cost of the asset can be measured reliably, and is verifiable, can only be confirmed, otherwise cannot be recognized as an inventory.For example: the estimated cost of manufacturing enterprises has not actually occurred, cannot reliably determine its cost, and therefore not included in the inventory.This condition is also applicable to institutions.
Measurement of
3 inventory
3.1 purchase of measuring inventory initial cost
According to the provisions of the accounting standards for enterprises inventory costs include purchase costs, processing costs and other costs.Different inventory cost constitute different contents.Raw materials, commodities, low-quality consumables through the purchase of the inventory cost is composed of purchasing cost; finished products, products, semi-finished products, commissioned processing materials through further processing and the inventory cost by purchasing cost, processing cost and inventory to state and the place of other the current cost.
Inventory procurement costs, including the purchase price, import duties and other taxes and fees, transportation fees, handling fees, insurance premiums, the other can be directly attributable to the purchase cost.The purchase price is refers to the enterprise purchase, the above the invoice the price, but not in accordance with the provisions can be deductible vat.Other taxes, is refers to the enterprise purchase, occurrence of self-made or commissioned processing inventory consumption tax, resource tax, can not be deductible VAT.Other directly attributable to inventory costs include storage fee, occurred in the procurement process packaging costs, transportation costs, reasonable loss during transportation, storage before the pick up costs these costs if they can distinguish the burden of object, shall be included in the cost of procurement; whose cost-bearing object could not be, should be assigned method to choose reasonable considering the purchase costs of inventories.Allocation method usually include inventory by weight, number, size, and price ratio distribution.
The processing cost of inventory includes direct labor costs and manufacturing costs should be shared.Other cost of inventory refers to the addition of procurement costs, processing costs of the inventories to their present location and the current state and the occurrence of other expenditure plan person inventory.Use materials business unit purchased (i.e. professional activities and auxiliary materials) should be based on the purchase price, transportation and the burden of taxes as a material balance price.Accounting for purchased only occurs when the material, material purchased the cost of loading and unloading, storage charges, insurance premium, did not make specific provisions.I think now that is not occupied, it is enterprise products or services consumed, then there is the relationship between the ratio, valuation methods according to enterprise units shall, will purchase materials handling, storage charges, insurance premium and so on material cost.Need of special note is the following expenses cannot be considered the cost of inventory, and should be recognized in profit or loss for the period.Institutions should be classified as expenditure directly.
The normal storage costs, refers to purchasing occurred after the warehousing fee.But does not include in the production process of the storage charges.
the abnormal consumption of direct materials, direct labor and manufacturing costs.
3.2 inventory measurement
According to the provisions of the accounting standards for enterprises, the inventory valuation method cost individual valuation method, advanced selected method, weighted average method, moving average method.The specific identification method is also called individual pricing method, actual batch method, the specific identification method, it is according to the actual cost of each stock as the computational cost of inventories issued.The FIFO method is based on the first purchase of inventories shall be first out, valuation of inventories; weighted average method is based on the total purchase volume plus month inventories as weights, removal and all the cost of purchase and the month beginning inventory cost, calculated the average unit cost of inventory.To determine the cost of inventories issued by the average unit cost; moving average method is to each purchase cost plus the original inventory costs divided by the number of each purchase, plus the original inventory quantity and, according to determine the average unit cost, and in order to determine the cost of inventories.
Provisions of the accounting system in institutions, institutions receive stock or inventory, can choose the first-in first-out method, weighted average method and specific identification method to determine its actual cost according to the actual situation, compared with enterprise choice is narrow, this is mainly due to consumption of some institutions of the material is not with the cost, profit the match ratio.The author thinks that institution inventory measurement should distinguish is for personal use or for respectively valuation related products or services.Institutions for their own use shall be measured with the weighted average method is simple, it is easy to do, rather than their own shall be measurement method of enterprise measurement.
The final measurement of
4 inventory
According to the "Enterprise Accounting Standards No. 1 inventory", in the statement of assets and liabilities inventory should be valued at the lower of cost and net realisable value measurement."Net realizable value" should be based on the balance sheet date to the inventory estimated price minus to completion costs, sales costs and related tax payments to determine.Net realizable value of the identified must be based on reliable evidence.The evidence here refers to the determination of inventory can have a direct impact on net realisable value conclusive proof.Net realizable value of the identified include the following:
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