Inventories Measurement – Between Prudence and Nonprudence
AbstractIn accounting, measurement is the process used to determine the value at which the items of financial statements are recognized in accounting and presented in the balance sheet and in the profit and loss account. Starting from the importance of measurement in accounting, the first study objective in this paper brings in the center of discussion the inventories measurement with the purpose to identify the main methods for inventories measurement at exit used by the economic entities listed on EuroNext Paris Exchange Stock. In the present context, when the financial crisis is still felt in the EU countries is important to note the extent to which economic entities demonstrate prudence in accounting by taking into consideration the inventories impairment at balance sheet date. Compliance with the prudence principle to integrate uncertainty in accounting measurement has the purpose to avoid the risk to transfer in the future periods the present uncertainties that are likely to strike the economic entity. One of the main consequences of this principle is to make impairments for inventories. Therefore the second objective of the present paper is to reflect the extent to which the entities under study record impairments for inventories at balance sheet date, as well as to highlight the manner in which is disclosed the information regarding the way the net realizable value can be calculated.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Constantin Brancusi University, Faculty of Economics in its journal Constatin Brancusi University of Targu Jiu Annals - Economy Series.
Volume (Year): 4.II (2010)
Issue (Month): (December)
IAS 2; inventories measurement; prudence in accounting; inventories impairment; net realizable value;
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ecobici Nicolae).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.