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. | ||
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==Stock-taking stages== | ==Stock-taking stages== | ||
The activities of stock-taking can be divided into four essential stages: | The activities of stock-taking can be divided into four essential stages: | ||
*'''First stage''' - preparing stock-taking, | * '''First stage''' - preparing stock-taking, | ||
*'''Second stage''' - making census of assets, | * '''Second stage''' - making census of assets, | ||
*'''Third stage''' - includes establishment, verification and settlement of differences in stock-taking, | * '''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]]. | * '''Fourth stage''' - using the results of the stock-taking to improve methods of assets [[management]]. | ||
==Some types of stock-taking== | ==Some types of stock-taking== | ||
*'''systematic''' - it is repeated periodically or constantly in a continuous [[system]], | * '''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, | * '''occasional''' - appears suddenly and is done for a reason (e.g. flood), but also for a special control, | ||
*'''emergency''' - unannounced, | * '''emergency''' - unannounced, | ||
*'''full''' - includes both foreign and own assets, | * '''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. | |||
{{infobox5|list1={{i5link|a=[[Inventory analysis]]}} — {{i5link|a=[[Accounting process]]}} — {{i5link|a=[[International accounting standards]]}} — {{i5link|a=[[Periodicity concept]]}} — {{i5link|a=[[Accounting concepts]]}} — {{i5link|a=[[Accounting Convention]]}} — {{i5link|a=[[Time period concept]]}} — {{i5link|a=[[Tax books]]}} — {{i5link|a=[[Accounting Principles]]}} }} | |||
==References== | ==References== | ||
Latest revision as of 06:04, 18 November 2023
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.
| Stock-taking — recommended articles |
| Inventory analysis — Accounting process — International accounting standards — Periodicity concept — Accounting concepts — Accounting Convention — Time period concept — Tax books — Accounting Principles |
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
