Mathematics in Education, Research and Applications (MERAA), 2022(8), 2
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Published online 2023-02-28
DOI:https://doi.org/10.15414/meraa.2022.08.02.66-73
Alternatives to the measurement of inventories of the same type within their outflows in agricultural companies
Iveta Košovská
Slovak University of Agriculture
Article Fulltext (PDF), pp. 66–73
- The measurement of assets and liabilities as at the measurement date is crucial in each accounting entity
not excluding agricultural entities. The most essential legal norm in the Slovak Republic focusing on the measurement
is the Act No. 431/2002 Coll. on Accounting. The main task of article is to determine the alternative of measurement
of inventories of the same type when they are removed from agricultural companies. With the above calculations we would
like to present the possibilities of using quantitative methods in the accounting of agricultural companies. The entity
can select any measurement method which should be specified in its internal policies and cannot be changed during the
accounting period. It should select a method that shows consumption of inventories of the same type as faithfully as possible.
It can be concluded that the WAA inventory shrinkage method allows the value of an entity's inventories to be expressed
at relatively current prices. It is simple and is often used by entities that hold large quantities of different inventories.
- Keywords: accounting, measurement, assets, inventories, weighted arithmetic average
- JEL Classification: Q14, M40, M41