Inventory of assets and liabilities
2007-01-01

Inventory of assets and liabilities

According to the legal regulations in force, companies are required to effect for at least one time per year during their functioning period the General Inventory of Assets and Liabilities.

Usually, the annual inventory of assets and liabilities is to be carried out at the end of the accounting period (fiscal year). The person responsible for the good management of the Inventory works is the administrator of the company or another person who is responsible for the stocks management of assets and liabilities and who is in charge with the drawing up and with sending forward to the inventory commissions of the inventory related written procedures that are adapted to the company's profile.

Procedural aspects

The carrying out of the inventory of assets and liabilities is to be performed by the inventory commissions, which are made -up of minimum 2 persons, who are appointed by written decision, issued by the administrator or by another person who is responsible for the stocks management of assets and liabilities. The appointment decision must necessarily stipulate the members who make-up the inventory commission, the name of the manager of the commission, the way in which the inventory is to be effected (by counting, by weight, by measuring, as the case may be), the stocks to be inventoried, the commencement date and the termination date of the inventory operations.

The inventory commission can not be made up neither of the persons who are in charge with the management of the stocks subjected to the inventory process nor of the accountants who are in charge with the recording of the respective stocks.

All goods to be inventoried are recorded under inventory lists (records), which must be drawn up separately for warehouses, for stocks and for categories of goods. The inventory lists must be signed on each page by each of the members making-up the inventory commission and by the person in charge with the stocks management.