Inventory differences in inventories and fixed assets


On 15 April 2019, the National Accounting Board approved Interpretation I-39, which aims to unify the accounting treatment of selected cases of inventory differences.

The issue is regulated by two regulations: Decree No. 500/2002 Coll. for Entrepreneurs and Czech Accounting Standard for Entrepreneurs No. 007 Inventory Differences and Losses within Natural Inventory Decrease Standards. Pursuant to the Decree, we record the surplus in operating income, while the CAS deals with it by cost correction.

The National Accounting Board confirms that it is necessary to assess whether the difference occurred in the current period or is an error of previous years. A correction of comparative information in the financial statements is required for errors made in prior years.

The National Accounting Board prefers to account for surplus stocks as a cost correction, as it is an adjustment to the value of the stocks removed and not additional revenue.

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