ABSTRACT
STOCK IN ACCOUNTS There are three main types of stocks (inventories), which companies need to disclose separately in the notes [SSAP MAS 2]:
• raw materials and consumable stores • work-in-progress • finished goods for resale
Under the matching convention, accounts normally carry forward the cost of stocks on hand at the end of a period as a current asset in the balance sheet, to expense against the related sales revenue in a future period. Thus any change in stock value will affect two accounting periods, not just one: the closing stock at the end of the first period and the opening stock at the beginning of the next.
