INVENTORY VALUATION IN THE UAE: The inventory held by a business enterprise is one of the most important assets that the business owns. Inventory or stock is anything that is held by the business for the purpose of sale or to generate revenues over a period of time.
As the inventory is responsible for the amount of profit earned by the business, inventory also demands careful attention in the recording and valuation. If there is misrepresentation in the valuation of the inventory held by the enterprise, it can lead to a lot of issues that will be responsible for the amount of losses borne by the business.
It is important that inventory is calculated and valued in the right manner so as to know the truth and the fair financial position of the business. There are several methods that can be used to value the inventory and it is necessary to keep track of the movement of the inventory and the details regarding the damaged and wasted stock should also be managed for further planning and control of inventory.
Inventory Management is one of the fastest emerging concepts and theory and it is very important for every business to adopt this in order to ensure that the inventory is carefully managed and processed over time.
With the introduction of excise tax in the UAE, it becomes a necessity for businesses dealing in the excise goods to be more careful about the inventory they own and track in and out of the inventory. Excise goods include tobacco products, energy, and carbonated drinks.
ARC Associates – auditors and consultants in the UAE provide the inventory valuation services to our clients and the dedicated team works to provide the best quality service to the clients. Inventory valuation in regard to the Excise Tax in the UAE will be managed by the professionals at ARC Associates.
Along with the inventory valuation services, we at ARC Associates will provide the best support and guidance on all topics and queries related to the Excise Tax and the Value Added Tax.
For a no-obligation initial consultation, please contact:
Mr. Reyees. K.P | Director
ARC Associates
Tel: +971 4 4431604
PO BOX 390831
Mob: 055 4874391
B2B Tower, Office 1213
Business Bay
Dubai, UAE
Email: info@arcauditing.ae