Inventory Accounting and Valuation (AF-069) Training Course

Inventory Accounting and Valuation

Inventory is often one of the largest assets on the balance sheet and one of the most judgement-heavy areas in financial reporting. Errors in costing, cut-off, counting…

5 daysClassroom or online

49Upcoming dates

12Cities

£2,250Fees from

Course overview

Introduction

Inventory is often one of the largest assets on the balance sheet and one of the most judgement-heavy areas in financial reporting. Errors in costing, cut-off, counting or write-downs can distort profit, mislead decision makers and attract audit adjustments.

This Inventory Accounting and Valuation training course provides a thorough understanding of how inventory should be measured, recorded and controlled. Participants learn which costs to include, how to apply cost formulas, how to allocate production overheads, and how to assess net realisable value, obsolescence and slow-moving stock.

The course also covers stock counts, reconciliations, cut-off procedures, inventory controls and the relationship between inventory accounting and operational decisions, helping finance and operations teams work together to keep inventory figures reliable.

Course Objectives

By the end of this training course, participants will be able to:

Apply international accounting principles for the recognition and measurement of inventory
Determine which costs are included in inventory, including production overheads
Apply cost formulas such as FIFO and weighted average cost correctly
Assess net realisable value and calculate write-downs for obsolete and slow-moving stock
Plan and control physical stock counts and cycle counts
Reconcile inventory records with the general ledger
Design controls to prevent inventory loss, errors and manipulation
Use inventory information to support operational and financial decisions

Target Audience

This training course is suitable for a wide range of professionals, including:

Financial and cost accountants
Financial controllers and finance managers
Inventory and warehouse managers
Supply chain and operations professionals
Internal and external auditors
Plant and production controllers
ERP key users responsible for inventory processes

Training Methodology

The course uses worked examples, costing exercises, stock count planning workshops and case studies from manufacturing, retail and distribution businesses. Participants calculate inventory values under different methods, assess provisions and design controls, building practical skills that can be used immediately.

Target Competencies

Inventory measurement
Product costing
Provisioning and write-downs
Stock count management
Inventory control design
Finance and operations collaboration

Course outline

1Day One: Inventory Accounting Principles

Definition and Classes of Inventory: Raw materials, work in progress and finished goods
Recognition Criteria: Ownership, control and goods in transit
Measurement at Lower of Cost and Net Realisable Value
Inventory and Financial Statements: Impact on profit and working capital
Disclosure Requirements: What users need to know
Common Reporting Errors and Their Consequences
Case Study: Reviewing inventory-related audit adjustments

2Day Two: Costing Inventory

Costs of Purchase: Prices, duties, freight and discounts
Costs of Conversion: Direct labour and production overheads
Fixed Overhead Absorption: Normal capacity and abnormal costs
Excluded Costs: Storage, administration and selling costs
Standard Costing: Setting standards and handling variances
Joint and By-Products: Allocation approaches
Practical Exercise: Calculating the cost of manufactured products

3Day Three: Cost Formulas and Valuation Adjustments

FIFO and Weighted Average Cost: Application and comparison
Specific Identification: When it is appropriate
Net Realisable Value: Estimating selling prices and completion costs
Obsolete and Slow-Moving Stock: Ageing analysis and provisioning policies
Reversals of Write-Downs: Requirements and evidence
Inventory in Inflationary or Volatile Markets
Workshop: Preparing an inventory provision calculation

4Day Four: Stock Counts and Reconciliations

Planning Physical Counts: Instructions, teams, freezing and cut-off
Cycle Counting Programmes: Frequency and selection
Investigating Count Differences: Root causes and adjustments
Cut-Off Procedures: Receipts, dispatches and production
Reconciling Sub-Ledgers to the General Ledger
Consignment Stock and Third-Party Warehouses
Practical Exercise: Designing a stock count plan and reconciliation

5Day Five: Controls and Decision Support

Inventory Control Framework: Access, movements, approvals and monitoring
Fraud and Loss Risks: Theft, manipulation and false adjustments
Key Inventory Indicators: Turnover, days on hand and accuracy
Working Capital Optimisation: Finance and supply chain collaboration
System Considerations: ERP inventory valuation settings
Audit Preparation: Documentation and evidence
Action Plan: Improving inventory accounting and control

Frequently asked questions

How long is the Inventory Accounting and Valuation course?

The course runs over 5 days of classroom training, usually Monday to Friday.

When is the next Inventory Accounting and Valuation course?

The next public date is 7 - 11 Dec 2026 in Frankfurt. There are 49 upcoming dates in total.

Where is this course held?

Upcoming sessions run in Frankfurt, London, Barcelona, Cape Town, Dubai, Geneva, Istanbul, Kuala Lumpur, Munich, Paris, Vienna, Amsterdam.

Can I take Inventory Accounting and Valuation online?

Yes. Every date can also be joined live online in a virtual classroom with the trainer, for £1,280 per participant. Choose "Live online" in the dates table when you register.

How much does the course cost?

Fees start from £2,250 per delegate, depending on the city. Fees include tuition and course materials.

Do participants receive a certificate?

Yes. Delegates who complete the course receive a London Leadership Management Innovation certificate of completion.

Can this course be delivered in-house for our team?

Yes. LLMI can tailor and deliver this course privately for your organisation at your premises or in one of our training cities.

Course information last updated 14 November 2026.

Inventory Accounting and Valuation

Course overview

Introduction

Course Objectives

Target Audience

Training Methodology

Target Competencies

Course outline

Dates and fees

Frequently asked questions

More Accounting and Finance courses

Accounting Policies and Procedures

Accounts Payable: Accounting and Management Best Practices

Activity-Based Costing and Profitability Analysis

Training a team?