book inventory of a material balance area - the algebraic sum of the most recent physical inventory of that material balance area and of all inventory changes that have occurred since that physical inventory was taken
1. The accounting records shall show in respect of each material balance area:
(a) all inventory changes, so as to permit a determination of the book inventory at any time;
(b) all measurement and counting results that are used for determination of the physical inventory;
(c) all corrections that have been made in respect of inventory changes, book inventories and physical inventories.
2. A tolerance limit may be fixed for losses attributable to the preservation of the products stored.
Quantity losses due to preservation shall be equal to the difference between the theoretical stock shown in the accounts inventory and the physical stock remaining on the last day of the year, as established on the basis of the inventory provided for in Article 3, or to the stock shown as remaining on the books where the physical stock in a store has been exhausted during the course of the year.
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