Valuation of materials in accounting

Abstract

Importance: the subject of the study is a set of theoretical, methodological and practical aspects related to determining the cost of materials, their reflection in the accounting and reporting system in order to ensure the reliability of financial information, assessing the impact of the selected method on financial results. Purpose: determination of the cost of materials for reflection in accounting and reporting for – hangs from the stage of circulation: receipt, storage, disposal. Research design: material valuation in accounting is a multifaceted system that includes not only accounting methods for calculating costs, but also their deep relationship with management, economic, tax and production processes. The paper presents not only traditional methods for evaluating materials, but also innovative approaches proposed by scientists and regulatory acts. Results: At initial recognition, materials are recorded at actual cost, at the stage of decommissioning, materials are valued at the cost of each unit, at average cost or using the FIFO method, the valuation of stocks after recognition is based on a comparison of actual cost and net selling price. An important aspect of accounting and analytical support of transactions with materials is the identification of signs of possible impairment. The formation of estimated reserves has a direct impact not only on financial results, but also on the financial position of the organization.