Bestandswertung

Bestandswertung, in accounting and finance, refers to the process of determining the value of a company’s inventories at the end of a reporting period. This valuation affects the balance sheet as current assets and the income statement through cost of goods sold and gross profit. Inventories typically include raw materials, work in progress, finished goods, and may also cover stores and consumables.

Valuation is typically done at the lower of cost and net realizable value, with cost comprising the purchase price and other costs to bring the inventory to its present location and condition, such as handling, transportation, import duties, and production overhead. Costs are allocated to inventory items by a systematic method.

Common methods for cost flow assumptions include First In, First Out (FIFO), Weighted Average Cost, and, in some jurisdictions, Specific Identification. LIFO (last in, first out) is used in some accounting regimes but is generally not permitted under IFRS; it can be allowed under US GAAP. The choice of method influences both the reported cost of goods sold and ending inventory value and should reflect the physical flow of goods where possible.

Under IFRS (IAS 2) and many national standards, inventories are measured at cost or NRV, with write-downs to NRV required when the cost exceeds NRV. Reversals of previous write-downs may be allowed under IFRS but are restricted in other frameworks. For perishable or obsolete stock, write-downs are common, and reversals depend on applicable standards.

Bestandswertung is thus a core component of financial reporting, balancing historical cost with current market conditions to present a faithful representation of inventory value.