Appraising of inventories - raw materials and materials, finished products (goods), materials in process - is conducted by each company independently in accordance with established accounting rules. But in some cases, such an appraising is not enough and there is a need to involve professional experts to get an independent appraising. Qualitative professional appraising of inventories, in contrast to the accounting appraising takes into account not only the costs of the enterprise, but also other factors, the company's position in the market, the level of competition in the industry, the availability of insurance, customer relationships, and the company's image. Therefore, an independent appraising shows the value of the assets of the enterprise more objectively, taking into account all possible risks and the time factor.
Classification of inventories depending on the purpose and role in production:
- raw materials;
- purchased semi-finished products;
- spare parts;
- building materials;
- inventory and household supplies;
- container and packing materials;
- supporting materials;
- special clothes and special equipment;
Inventory appraising is conducted using the following methods:
- single-piece appraising;
- first in stock - first to production (FIFO);
- last in stock - first to production (LIFO);
- average cost;
- sliding cost.
By means of these methods, it is possible to determine the exact amount of stock in warehouses and, based on the information received, to resolve the issue of the effectiveness of the company's business practices.
Appraising of inventories is conducted using three classical approaches: cost, income and comparative ones. Depending on the purpose of the appraising, the value of inventory can be calculated as market, investment, fair (for accounting) and valid (for insurance purposes).
Due to the fact that a crucial part of all financial resources of commercial organizations is concentrated in inventory, an objective appraising of inventory (stocks) can significantly improve the efficiency of enterprise management. Rovex Appraising Company guarantees the accuracy, objectivity and reliability of the appraising results. The cost of service for the appraising of inventories depends on the volume and specificity of the estimated inventory items.