rimanenze

Rimanenze is the term used to describe the stock of goods and materials that remain unsold or unused at the end of an accounting period. In Italian accounting, rimanenze include rimanenze di materie prime, rimanenze di lavori in corso, rimanenze di prodotti finiti and rimanenze di merci. They are typically shown among current assets on the balance sheet and reflect the value tied up in inventory, playing a key role in the computation of cost of goods sold.

Valuation and measurement: Rimanenze are generally measured at cost. If the net realizable value (NRV)—the estimated selling price less the costs of completion and sale—falls below cost, a write-down to NRV is recognized in the income statement. The chosen cost formula (for example, FIFO or weighted average) should be applied consistently; under IFRS, LIFO is not permitted. For production entities, the cost includes material, labor, and appropriate overheads allocated to inventory.

Presentation and impact: Changes in rimanenze during the period affect both the balance sheet and the income statement. Opening stock plus purchases and production costs during the period minus closing stock yields the cost of goods sold and influences reported profit.

Standards and policy: Under IFRS, reversals of previous write-downs to NRV are allowed if NRV recovers, up to the original cost. National accounting standards, such as Italian GAAP, may have particular rules and disclosure requirements. Inventories are typically disclosed by category (raw materials, work in progress, finished goods, merchandise) and monitored for impairment to ensure the carrying amount remains recoverable.