Bestandswerte

Bestandswerte is a term used in German accounting to denote the values assigned to inventory items recorded as assets on the balance sheet. It encompasses the values of goods and materials that a company holds for production, sale, or maintenance of operations, and is typically reflected in the current assets section of financial statements.

The scope of Bestandswerte includes categories such as Rohstoffe (raw materials), unfertige Erzeugnisse (work in progress), fertige Erzeugnisse (finished goods), and Handelswaren (merchandise). Inventory values are determined for each category and summed to form the total inventory on the balance sheet. The valuation of Bestandswerte is closely tied to cost accounting and production control, influencing both the balance sheet and the cost of goods sold in the income statement.

Valuation principles commonly used for Bestandswerte aim to reflect economic reality and prudence. In many jurisdictions inventories are valued at cost, or lower of cost and net realizable value (NRV). The cost typically includes purchase price and directly attributable costs, plus an appropriate share of overhead if the items are manufactured. The NRV is the estimated selling price in the ordinary course of business minus estimated costs of completion and sale. If the NRV falls below cost, a write-down to NRV is usually required.

Impairment and reversals of Bestandswerte depend on the applicable accounting standards. Write-downs to NRV may be recognized, and in some regimes reversals are allowed if the circumstances change, while others restrict reversals. The treatment affects reported assets, equity, and profitability, and is often accompanied by notes that explain valuation methods and any changes in estimates.

See also: Inventar, Lagerbestand, Niederstwertprinzip, Inventory valuation.