THE ESSENCE AND CLASSIFICATION OF INVENTORIES: ACCOUNTING AND MANAGEMENT ASPECTS

The analyses of legislation, which determines the essence of «stocks» and «inventories» categories is made. The analysis of the interpretation of «inventory» as an economic category in accordance with IAS 2 «Inventory» and the National Standard showed that the interpretation of «inventory» category is the same in both standarts: the international standard and the national accounting standard. It is established that there is a contradiction in the interpretation of «stocks» and «inventories» categories in accounting standards and account-plan book keeping. According to accounting standards, the categories «stocks» and «inventories» are the same, while according to the account-plan book keeping, the category «stocks» is broader than the category «inventories». The analysis of scientific sources of «inventories» category has shown that this category is complex and interpreted differently by scientists. In terms of this analysis, it is possible to conclude that some scientists think that nondurable producer goods and in-process inventory should not be included in the category of inventories. There are scientists who are convinced that «stocks» and «inventories» categories are the same. The term «inventory equipment and supplies» is used in some scientific sources. Some scientists consider «inventories» and «physical resources» categories to be the same. An important condition for a rational organization of inventory accounting is their classification. Existing economic classifications do not fully correspond to the specifics of production of a particular enterprise. The classification of inventories for accounting and management needs is proposed. The classification takes into account their economic and managerial aspects.