I am taking part English challenge, This week I have to write some text. It is never to late. Here is text. I need a small feedback about my skills. Thank you for you help!
Here is my work text about accounting of allowance for impairment of stocks.
During the audit, it was revealed that on account 41 “Goods for resale” there are stocks from 1 year to 5 years and more in stock. The cost of inventories without movement a period of more than 1 year amounted XXX. Part of the stock is stored in the warehouse for more than 5 years. Stocks are kept for sale on repair services for sold earlier goods of the Trade Unitary Enterprise XXX.
In accordance with p. 20 of Instruction 133, the allowance for impairment of tangible assets is formed at the expense of the organization’s financial results by the amount of the difference between the net realizable value and the actual cost of inventories, if the latter is higher than the net realizable value.
Net realizable value is determined for each unit of inventory or for a group of stocks by subtracting from the expected selling price the expected costs of completion of production and (or) sales.
To determine the net realizable value is need to evaluate changes in the price or cost of inventories directly related to events that occurred after the end of the reporting period are taken into account, if these events confirm the conditions that existed at the end of this period.
Due to the fact that the goods are stored in the warehouse for a long period of time and it is likely that they are outdated and not demanded by the buyers, we recommend the company to issue a policy for allowances for impairment of inventories. Due to the non-realization over a long period of time on the market of the Republic of Belarus there is a probability that the stocks are taken into account at an overestimated cost, for which buyers are not ready to purchase the specified goods.