Features of subsequent inventory valuation and accounting of provisions for a decrease in stock value

The study aims to reveal current issues of subsequent inventory valuation and accounting of provisions for a decrease in the value of material assets in accordance with modern accounting legislation requirements. It presents a review of the original approaches to reflecting the stocking cost, revealing the principles of formation of the cost of inventories in accordance with regulations of the federal accounting standard (FAS) 5/2019. We have identified the methods for reflecting inventories in the reporting in the event of a decrease in their net realizable value below the actual cost. The article analyzes internal and external factors affecting impairment, presents methodology for assessing the net realizable value. It also considers the issues of forming and accounting of provisions for a decrease in the cost of inventories, its write-off and adjustment of the corresponding indicators of financial statements. We have illustrated the reflection of inventory impairment in accounting using the example of materials and goods, given accounting entries and corresponding calculations showing the modification of the cost. The study summarizes the practice of accounting and reflecting inventories in reporting by large companies of the Ural region. Findings of the study can be used by modern enterprises when developing accounting policies and forming financial statements. We have come to the conclusion about the need for correct reflection of the cost of inventories in order to increase the reliability and representativeness of accounting data, which will allow developing effective solutions that meet modern economic challenges.