What is inventory according to Turkish Trade Law and how is it taken?
1- WHAT IS INVENTORY ACCORDING TO TURKISH TRADE LAW AND HOW IS IT TAKEN?
Each tradesman is supposed take inventory of their immovable, receivables, debts, cash money and other assets showing their assets properly in the launching of their business entities.
2- How much is the inventory operating cycle?
Tradesman takes inventory at the end of operating cycle after launching his business. Calculation year does not exceed 12 months. Inventory is taken within the transaction period of a company.
3-In Which Cases taking inventory is compulsory?
If raw, auxiliary and working material is substituted properly and their total values have secondary importance in a company, they are taken into the inventory however; their current amounts may be different than actual values. As a rule, inventory has to be taken in every three years.
4-What are the enabling methods while taking inventory?
Enabling methods while taking inventory;
4.1– While taking inventory, current asset is decided as amount and value with the help of generally accepted mathematical-statistical methods. Used method should be suitable for Turkish Accounting Standards. Mathematical results should be in accordance with physical results.
4.2- Physical inventory is not necessary in carrying out closing stock, if sort, quantity and value are met according to the Turkish Accounting Standards.
4.3- In the closing of operating cycle, if physical inventory is taken according to the Turkish Accounting Standards, 3 months before and following 2 months of year end procedure, there will be no need for inventory stock transaction anymore.
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Source: Turkish Trade Law
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