Inventory accounting in a new way

The article discusses the new rules and features of the organization of inventory accounting in accordance with the new Federal standard. In April 2020, FSB 5/2019 «reserves» was signed, which replaced PBU 5/01. It is noted that the new standard will be applied in the formation of indicators of accounting (financial) statements for 2021. However, legal entities have the right to apply this Federal standard ahead of time. To do this, the corresponding decision must be disclosed in the accounting (financial) statements for 2020. The new standard provides a more precise definition of reserves and their classification. It should be noted that inventory now includes work in progress, as well as real estate, intellectual property (results of intellectual activity) acquired or created for sale. Business transactions that lead to a change in the type of inventory (release of inventory to production, output of products, shipment of finished products or goods to the buyer before revenue is recognized) are not grounds for writing off inventory. Thus, the scope of the standard has been expanded, and now the standard directly stipulates that inventory can include not only raw materials, materials, finished products and goods, but also work in progress, as well as real estate, intellectual property objects (results of intellectual activity) purchased or created for sale.