Sell ​​directly after repossession

Continue to process taxable products after recovery

(1) The market price of inventories continues to fall, with no hope of recovery in the foreseeable future.

(2) The cost of the products produced by the enterprise using the raw materials is greater than the sales price of the products.

(3) Due to product upgrading, the company’s original inventory of raw materials no longer meets the needs of new products.

(4) Market demand changes due to obsolescence of goods or services provided by the enterprise or changes in consumer preferences, resulting in a gradual decline in market prices.

(5) Other circumstances that are sufficient to prove that the inventory has actually been impaired.

① Inventories that have become moldy and spoiled.

② Inventories that have expired and have no transfer value.

③ Inventories that are no longer needed in production and have no use value or transfer value.

④Other inventories that are sufficient to prove that they have no use value or transfer value.

1. Reversal: Debit: Inventory depreciation reserve Credit: Asset impairment loss

2. Transfer of sold products: borrow: main business costs, etc. Inventory impairment Credit: Inventory goods

Net realizable value = contract price – estimated sales tax

Net realizable value = market price – estimated sales tax

Net realizable value of materials = estimated selling price of the product - processing costs to be incurred until completion - estimated sales tax