Stock-taking: Difference between revisions
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'''Stock-taking ''' - These are activities which leads to determine the real state of fixed assets and current assets of the [[firm]] and also liabilities in that moment. The purpose of the stock-taking is to check and correct all accounting data as well as to settle the people who were responsible financially for the overseeing property. | '''Stock-taking ''' - These are activities which leads to determine the real state of fixed assets and [[current assets]] of the [[firm]] and also liabilities in that moment. The purpose of the stock-taking is to check and correct all accounting data as well as to settle the people who were responsible financially for the overseeing property. | ||
==Aim of stock-taking== | ==Aim of stock-taking== | ||
Revision as of 18:58, 20 March 2023
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Stock-taking - These are activities which leads to determine the real state of fixed assets and current assets of the firm and also liabilities in that moment. The purpose of the stock-taking is to check and correct all accounting data as well as to settle the people who were responsible financially for the overseeing property.
Aim of stock-taking
- gives assurance of the reality of the economic information by bringing consistency of data resulting from the records into conformity with the facts on a specific date,
- allows for settlement of assets and people responsible for overseeing the property,
- gives possibility to assess the assets in terms of their economic usefulness.
Stock-taking stages
The activities of stock-taking can be divided into four essential stages:
- First stage - preparing stock-taking,
- Second stage - making census of assets,
- Third stage - includes establishment, verification and settlement of differences in stock-taking,
- Fourth stage - using the results of the stock-taking to improve methods of assets management.
Some types of stock-taking
- systematic - it is repeated periodically or constantly in a continuous system,
- occasional - appears suddenly and is done for a reason (e.g. flood), but also for a special control,
- emergency - unannounced,
- full - includes both foreign and own assets,
- partial - includes only some of the assets,
- settlement - settled people who are financially responsible for the overseeing property,
- control - is done for purely inspection and is commissioned by bodies representing the company,
- review - is used to do a list to review the stock-taking for a particular purpose,
- annual - is used to determine the taxable income or to make balance and financial result realistic,
- quarterly - is used in some units to determine taxable income.
References
- Alexander, D., & Nobes, C. (2004). Financial accounting: an international introduction. Pearson Education.
- Camfferman, K., & Zeff, S. A. (2007). Financial Reporting and Global Capital Markets: A History of the International Accounting Standards Committee, 1973-2000: A History of the International Accounting Standards Committee, 1973-2000. OUP Oxford.
- Peta, E. (2013). Evaluation Of Inventories According To The Standards Of Accounting. European Scientific Journal, 9(1).
Author: Dorota Dziedzina
