Subject. This article investigates the conceptual developments in the Russian theory and practice of accounting for inventories due to the adoption of the new standard. Objectives. The article identifies and substantiates critical changes in the conceptual framework, classifications, law enforcement practice during the integration of Federal Accounting Standard 5/2019 – Inventories into the accounting theory and practice of the Russian companies. Methods. The study is based on a comparative analysis. Results. The new standard was found to not only supersede the one approved in 2001, demonstrate a greater compliance with the identical standard. However, it does have some distinctions, which are very specific by nature. The new standard enriches the conceptual framework, adds new items of expenditures, both current and future, which can be attributed to the initial cost of inventories due to the profitable nature of inventories as assets. I point out eight different changes that seem conceptual and constituting the novelty of the study. Conclusions and Relevance. The application of Federal Accounting Standard 5/2019 – Inventories will induce the revision of corporate accounting policies, setting up new internal standards of business entities. What does make them beneficial is the convergence of the national accounting practice and IFRS.
Keywords: International Financial Reporting Standards, Federal Accounting Standards, inventories
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