From January 1, 2023, Order of the Ministry of Finance dated October 7, 2022 No. 320, by which the Ministry of Finance approved changes to NP(S)А 9 “Inventories”, will come into effect.
The following amendments will be introduced:
- The actual cost of stocks, determined in accordance with NP(S)А 9 “Inventories”, is estimated as the initial cost.
- Discounts given by the supplier (seller) will form the actual costs that make up the cost of inventory.
- Storage costs, except for those costs that were provided in the production process before the next stage of production, are not included in the initial cost of inventory, but belong to the costs of the period in which they were incurred (established).
- The revision of the original cost of materials and other auxiliary materials intended for the production of products and its adjustment to the level of net sales value will not be carried out if it is expected that the finished products made from them will be sold at least below the cost price. Materials will be shown at net realizable value if a decrease in market prices for them would cause the cost of finished goods to exceed net realizable value.
- The notes to the financial statements will include information on: – the amount of inventories recognized as expenses during the period; – the amount of a partial write-off of the value of stocks to the net cost of their sale, recognized as expenses, in accordance with clause 27 of this NP(S)А 9 “Inventories”.
- It is specified that the accounting of transport and procurement costs is kept on a separate sub-account. At the same time, the reference to subaccount 289 “Transport and procurement costs” is removed.