Wnding inventory

Ending Inventory at End of Year

What Is the Meaning of Ending Inventory?

          The value of goods available for sale at the end of an accounting period is referred to as ending inventory. It is calculated as the beginning inventory plus net purchases less cost of goods sold. Net purchases are inventory purchases after returns and discounts have been deducted.

          While the number of inventory units at the end of an accounting period remains constant, the value of ending inventory is affected by the inventory valuation method chosen.

What type of business will be counted or checked (Ending Inventory)?

          The “Association of Accountants and Certified Public Accountants of Thailand” Accounting Standard No. 2 (Revised 2009) (formerly No. 31) titled Inventories defines “Inventory” as “Finished Goods, Work in Process, and Raw Material.” Product counting is required at the end of the year for any business that owns goods or raw materials, such as manufacturing, construction, buying and selling, importing and exporting, and so on.

          The intention of TAS 2 (Revised 2009) (formerly No. 31) Inventories to define inventory accounting practices The primary objective of accounting for inventories is to determine the amount of cost to be recognized as an asset and carried forward until revenue is recognized relative to each other. This accounting standard establishes guidelines for calculating the Cost of inventories and their subsequent recognition as expenses, including the reduction of the value of inventories to their net realizable value. This Standard also includes instructions for calculating the cost of inventories.

If the item count does not correspond, Or, if I compare the stock count and find a discrepancy, what should I do?

          Should investigate the source of the difference in product count to determine what caused the difference. This could be due to incorrect counting or inaccuracies, as well as incorrect recording of purchase and sale accounts. When the root cause has been identified, the list should be adjusted to reflect the correct number of products counted.

How do I make adjustments to my account if I have lost merchandise for unknown reasons?

         If the product is lost for unknown reasons, it appears that there is a shortage of goods from the report of goods and raw materials under Section 87 (3) or Section 87 paragraph two of the Revenue Code. Section 77/1(8)(E) of the Revenue Code considers it a sale of goods. Under Sections 79 and 79/3(3) of the Revenue Code, the Company is required to pay Value Added Tax (VAT) on the market price of the lost goods.

In case of burglary How do I make adjustments account ?

          In the event that a product purchased for resale is stolen and the company has already filed a police report, the vendor is liable for the loss. If such items are not covered by insurance or escort contracts, the owner is responsible for their replacement. This amount would be considered a business operation loss. The company is permitted to bring the total amount’s cost value. can be considered a deduction when calculating net profit for corporate tax purposes It is not prohibited by Section 65 Ter of the Internal Revenue Code, but the company must have credible proof that the goods are actually lost and the purchase tax resulting from the theft of the goods. It appears to be an input tax directly associated with business operations. Unless prohibited by Section 82/5 of the Revenue Code, the Company may deduct sales tax from the calculation of value-added tax pursuant to Section 82/3 of the Revenue Code.

Calculation of corporate income tax and inventory prices on the final day of the accounting period.

          Inventory price on the last day of the accounting period shall be calculated at cost or market price, whichever is less, and this price shall be considered the inventory price carried forward for the new accounting period in accordance with Section 65 bis (6) of the Internal Revenue Code. In actuality, the company calculates inventory costs on the last day of the accounting period. calculated based on the cheaper market price Consequently, this price shall be considered the cost of inventories brought forward for the new accounting period in accordance with Section 65 bis (6) of the Internal Revenue Code. However, the difference between the cost price and the market price is not included in the calculation of the company’s net profit. any.
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