Principles of proper inventory

Definition of proper inventory

The principles of proper inventory are to be added to the principles of accounting. They include:


Completeness, according to which all stocks are to be recorded at the end of each financial year and indicated with the correct values in the inventory. The creation of hidden volume reserves is to be prevented.


Correctness, ie the respective items are to be recorded correctly according to the type, the quantity and their value.


Economic efficiency, ie all stocks are to be recorded precisely, but only within the framework of what is reasonable. This means that estimates can also be made to a limited extent. So z. B. Stocks of supplies and equipment are estimated if they do not represent a significant part of the inventory.


Materiality, ie items of fixed assets with a value of up to € 100 do not need to be included in the inventory (R 31 para. 3 EStR).


Clarity, ie in the inventory the individual holdings are to be provided with item designations that allow the items to be identified. The inventory is intended to replace the inspection of the inventories that is no longer possible later.


Verifiability, ie the records must be so organized and clear that any expert third party can easily check them.


Timeliness, ie the inventory must be drawn up within a corresponding period of time (Section 249 (2) of the German Commercial Code).

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