Initial measurement of inventories in the new Federal Accounting Standard for non-public sector organizations

Abstract

This article analyzes the measurement rules for the recognition of inventories in the new Federal Accounting Standard for non-public sector organizations, including healthcare organizations in this sector. This standard comes into force in 2021 and, unlike RA 5/01, applies not only to accounting (including measurement) of material production inventories, but also to accounting (including measurement) of work in progress. The article examines the main innovations of the above-mentioned Federal Standard in relation to measurement when recognizing inventories, identifies the most important problematic issues in this area and provides recommendations for their solution.