przycisk: wersja angielska przycisk: wersja polska przycisk: wersja czeska przycisk: flaga rosyjska przycisk: flaga francuska przycisk: flaga niemiecka

Inventory in a company

The companies subject to the Accounting Act must verify the actual balance of the possessed property items against records in books of accounts. The inventory is made as of the last day of a financial year. In some cases, this requirement is deemed as observed if the activities are being started three months before the end of the financial year and are accomplished by 15th day of the following year.
The Accounting Act enumerates three main stocktaking methods:

  • 1. Stocktaking through a physical counting -relates to the establishment of the actual balance of assets and regarding to its type consists of counting, valuating, weighting or measuring the activities which should be accounted for in a special inventory sheet. This method applies mainly to:
    • buildings
    • machines
    • fixed assets
    • tangible current assets
    • cash at the entity’s cash-desk
    • securities
obrazek
  • 2.Coordination of balances - relates to the confirmation of the balance of assets and liabilities in books of accounts by contractors and creditors and debtors. The company should receive from contractors and banks written confirmations of the correctness of the balances. In case of banks, an abstract of account revealing the balance of the bank account makes such confirmation. In case of contractors and debtors one should request a written confirmation, which is to be attached to the inventory documents as a proof of the conformity of the actual balance with books of accounts records. If there are discrepancies, they should be explained. This method applies mainly to:
    • financial assets deposited in bank accounts
    • receivables from contractors
    • own assets entrusted to contractors
  • 3. Verification method - consist of the comparison of records in books of accounts with source documents This method applies among others to:
    • land and fixed assets which are difficult to access (for instance installations)
    • doubtful receivables and in case of banks – non-performing receivables
    • receivables and liabilities in respect of employees and state and local authorities
    • non-material and legal assets
    • prepaid and deferred costs and accruals
    • equity capital (ownership capital)
    • special funds (excluding ZFŚS which requires balance confirmation by bank)