voorraadwaarderingen

Voorraadwaarderingen refers to the accounting methods used to determine the monetary value of a company's inventory. This valuation is crucial for accurate financial reporting, as it directly impacts the cost of goods sold (COGS) and the value of assets on the balance sheet. Several common methods exist, each with its own implications for financial statements.

The first-in, first-out (FIFO) method assumes that the oldest inventory items are sold first. Under FIFO, the cost of goods sold reflects the cost of the earliest purchases, and the ending inventory is valued at the cost of the most recent purchases. This method tends to result in a lower COGS and a higher net income during periods of rising prices, leading to a higher inventory valuation.

The last-in, first-out (LIFO) method assumes that the most recently purchased inventory items are sold first. With LIFO, COGS is based on the cost of the latest purchases, and the ending inventory is valued at the cost of the oldest items. This method generally leads to a higher COGS and lower net income during periods of rising prices, resulting in a lower inventory valuation. LIFO is not permitted under International Financial Reporting Standards (IFRS).

The weighted-average cost method calculates an average cost for all inventory items. This average cost is then used to value both COGS and ending inventory. This method smooths out price fluctuations and provides a more representative cost in periods of changing inventory prices.

The specific identification method tracks the cost of each individual inventory item. This is typically used for unique or high-value items, such as cars or specialized machinery, where each item can be distinctly identified and its cost precisely determined. The choice of inventory valuation method can significantly affect a company's profitability and tax liability.