Alternatives to the measurement of inventories of the same type within their outflows in agricultural companies

Abstract

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.