Inventory and Movable Property Valuation

Independent inventory valuation determines the market or fair value of a company's stock-in-trade: raw materials, work in progress, finished goods and other movable assets. The Kanzas company has been valuing inventories for Ukrainian and international businesses for over 20 years, and our team includes appraisers holding international valuation certificates.

What counts as inventory and movable property

Inventory covers everything a business holds on its balance sheet for production and sale: raw materials and supplies, semi-finished goods and work in progress, finished goods, merchandise in warehouses and in transit, as well as biological assets accounted for as inventories. Movable property in the broader legal sense means tangible assets that can be relocated without damage. For production lines, machinery and specialised equipment, see our machinery and equipment appraisal services.

When inventory valuation is required

• pledging inventory as loan collateral — banks in Ukraine accept independent valuation reports;
• IFRS financial reporting, including measurement of inventories under IAS 2;
• insurance and insurance claims;
• purchase or sale of stock, including as part of M&A transactions;
• contribution of assets to share capital;
• litigation and damage quantification, including losses of inventories caused by the war in Ukraine;
• taxation.

Inventory valuation methods

Three approaches are applied, consistent with the International Valuation Standards (IVS). The market (comparative) approach is the primary method for liquid, actively traded stock: the goods are benchmarked against comparable offers on the market. The income approach is appropriate where the value of inventories derives from their expected sale. The cost approach is typically applied to work in progress and unique products, reflecting the costs of producing an equivalent item. The choice depends on the purpose of the valuation and the nature of the goods, so each engagement starts with a discussion of your specific task.

Documents required

• an itemised list of the inventories to be valued;
• purchase documents (invoices, contracts);
• confirmation of warehouse balances;
• information on the condition and quality of the goods.

If additional documents are needed for a reliable conclusion, the appraiser will request them at the outset.

How long the valuation takes

A standard inventory valuation takes about 3–5 business days from receipt of a complete document package. Timing and fees for large or complex inventories are agreed individually.

Questions and answers

Can the valuation report be used for bank collateral? Yes. Independent valuation reports are accepted by banks for lending secured by inventories and consignments of goods. We take into account the specific bank's requirements for the report and the liquidity of the assets.

Do you value inventories for IFRS reporting? Yes. We support the measurement and disclosure of inventories in IFRS financial statements, including valuations relied upon by auditors.

Do you work with foreign companies? Yes. We prepare valuation reports in English for international clients and for groups with operations in Ukraine.

Email us or message us in your preferred messenger to discuss your inventory valuation task — we will confirm the scope, timing and fee.