Lagerwert

Lagerwert is the monetary value of the stock kept in warehouses. In accounting and logistics, it denotes the value of raw materials, work in progress and finished goods that a company holds at a given date.

It includes the costs required to bring the goods to their current location and condition, such as purchase or production cost, freight, handling, and production overhead. It excludes costs incurred after sale or that are not recoverable through sale. It measures the capital tied up in inventory.

Valuation is typically at cost, or at lower of cost and net realizable value (NRV) if the NRV is lower. NRV reflects the estimated selling price less estimated costs to complete and to sell. Common cost methods include FIFO or weighted average; LIFO is generally not permitted under IFRS, and is uncommon in modern practice.

In financial reporting, Lagerwert affects the balance sheet, gross margin and liquidity analyses. Companies monitor inventory turnover, obsolescence risk, and write-downs to NRV, which can reduce profits and capital employed when demand or prices fall.

Usage varies by jurisdiction. In German practice, Lagerwert aligns with provisions under the HGB, while IFRS requires lower of cost and NRV. The exact rules depend on the applicable accounting framework and inventory category.