The date of the financial statements for the year 2018 is approaching.
This means that businesses and organizations have to take steps to ensure that information about assets and liabilities is correctly presented already. Among these measures, of course, the most important is inventory.
We remind owners and managers of business entities that inventory is needed not only to generate financial statements for users. Its results indicate, first of all, the ability of management personnel to properly store and effectively use available resources in the interests of owners. It is the actual availability of assets is a prerequisite for further opportunities to receive additional economic benefit from its using.
At the same time, very often the inventory by entities is limited to the formal recalculation of assets and liabilities, as well as the creation of appropriate generalization documents. In the case of determining the availability of cash, the enterprise under pressure of the requirements of regulatory documents tries to avoid any deviations and applies effective mechanisms for their proper settlement. However, consideration and thorough analysis of the results of the inventory of other types of assets and liabilities is carried out in the context of settling settlements for taxes and other mandatory payments only.
In this regard, there is a number of problems, which makes it impossible to answer the following questions owners:
1) Where are our money? The answer to this question will be given by the timely non-cash receivables and tangible assets that are stored completely or in a disassembled form for decades of years since their re-equipment and / or sale (due to the impossibility of using in modern technological processes) because the management have no time for it;
2) Can we expect more investment and loans? To answer this question it is necessary to determine the actual availability of assets because if officials are unable to provide the entity storing own property then who will risk (and how risky it is acceptable) to entrust such people with resources that they do not belong to;
3) Do not people rob us, whom we entrusted with the management of the company? To answer this question, it is enough to inventory deficiencies to identify the lack of certain assets associated with so-called "human factor".
Adequate answers to the above and other issues can contribute to solving another problem, namely, the possibility of compensating for real losses due to the loss of assets.
At the same time, it is worth paying attention to the fact that managers of business entities forget unfortunately. Namely: according to the current edition of the Resolution of the Cabinet of Ministers of Ukraine dated January 22, 1996, No. 116, the balance of funds after the indemnification of losses incurred by the enterprise, institution and organization, taking into account actual expenses of the enterprise for the restoration of damaged or acquisition of new material!
However, it should be noted that the quality of the inventory is one of the factors of confidence in these financial statements. Appropriate quality assessment may be provided by the auditor. Therefore, the entities subject to the audit of financial statements should already conclude relevant agreements with audit firms and invite their representatives to monitor the inventory process. The sooner auditors start their work, the more justifiable their judgment about the client's financial statements will!