Stocktaking (inventarizācija)

Stocktaking (inventarizācija) is the check of the actual state of an undertaking assets and liabilities on a given date, comparing the results with the accounting records and booking any differences found.

The Accounting Law requires it when a business starts, at the end of every financial year, when it ceases, on reorganisation, when insolvency proceedings are declared and when activity is suspended or resumed. The year-end count may be done within three months before the year end or one month after it, with balances rolled to the last day of the year.

The head of the undertaking sets up a stocktaking commission by written order and fixes the dates. Items are checked by inspecting, counting, weighing or measuring; receivables and payables are checked against documents and confirmed with debtors and creditors.

Results go into inventory lists, which must be kept for 10 years. An individual merchant or self-employed person only counts assets used in the business.