A burnt-down finished goods warehouse, destroyed raw materials, stock lost in occupied territory — for trading and manufacturing companies, inventory losses are often comparable to the loss of the buildings themselves. These damages are also subject to valuation and compensation.
The Kanzas company values inventory damages under Section III of the Methodology for Determining Harm and the Amount of Damages (joint order of the Ministry of Economy and the State Property Fund of Ukraine dated 18 October 2022, No. 3904/1223).
How inventory damages are determined
Under para. 6.1 of the Methodology, the valuation determines the costs, updated as at the valuation date, required to replace the property.
An important feature (para. 6.2): damaged inventory that has lost its original functional and consumer properties is treated as destroyed — the damages equal those from destruction. This is only logical: soaked raw materials or smoke-damaged finished goods are in most cases unsellable.
Assets we value
- raw materials and supplies;
- work in progress and finished goods;
- goods in the warehouses of trading companies;
- biological assets (crops, livestock, perennial plantings).
Typical cases
Warehouses with stock destroyed by fire; inventory losses in occupied or liberated territories; products that lost their properties due to depressurisation, power cuts or storage failures caused by shelling.
Documents required
- inventories of the lost or destroyed stock;
- inspection reports or opinions of experts of the Ukrainian Chamber of Commerce and Industry;
- warehouse and accounting records (balances at the date of the harm, cost, nomenclature);
- the general block: the fire report, an extract from the Unified Register of Pre-Trial Investigations, the demining certificate.
Deliverable
An inventory and goods damage valuation report — for a compensation claim, an insurance case or court.
We offer rigorous work with accounting data, realistic timelines and an individual approach to inventories of any size. Write to us by email or messenger — we will discuss your losses and prepare a fee proposal.
Valuation of existing (undamaged) goods in circulation — for collateral, lending or accounting — is a separate service: «Valuation of Goods in Circulation».
FAQ
How is partially damaged stock valued? If its functional and consumer properties are lost — as destroyed (para. 6.2).
Is a stock count required? Inventories and accounting records at the date of the harm are needed.
Are biological assets covered? Yes — crops, livestock and plantings belong to this class.
