Goods in wholesalers: Valuation at recognition, accounting considerations

Subject. This article deals with the issues of formation of the actual cost of goods when they are purchased in wholesale trade organizations. Objectives. The article aims to substantiate the method of formation of the actual cost of purchased goods of wholesale organizations, consider options for reflecting its components in the accounts, and highlight controversial issues in the valuation of goods when they are recognized. Methods. For the study, we used the methods of comparative analysis, content analysis, systematization, analogy, and generalization. Results. According to Federal Accounting Standard FSBU 5/2019 – Inventories, if goods are recognized in the accounting of a wholesale organization, there is a variability in the understanding of the actual cost. The article finds that the choice of components of the actual cost of purchased goods has a direct impact on many aspects of accounting. The article systematizes the methods of reflecting the received goods in accounting depending on the method of valuation, and formulates the peculiarities of their application. An analysis of regulatory documents shows that the procedure for calculating the write-off of deviations for goods has not been established yet. Conclusions and Relevance. Based on international practices, FAS FSBU 5/2019 – Inventories helps exercise professional judgment of an accountant in matters of valuation of goods of wholesale organizations upon recognition. The results obtained can be used both in theory and practice of reflecting commodity operations of wholesale organizations.