Synopsis
The company came to us via their external auditors because the Inland Revenue disagreed with their ‘write down’ policies on stock held over 12 months.  Prior to involving National Stocktakers, annual stock figures where entered into the accounts using accounting policies to calculate the results.
Due to the nature of the business, it was thought that there was no possibility of a physical stocktake with any real accuracy.

Stock valuation:-
After visiting some of the warehouses and assessing the problems of accessing the stock, National Stocktakers were able to provide sufficient evidence that an accurate, physical stocktake would be possible, taking into consideration the low value of the deteriorated stock.
An agreement with the Auditors was made with regards to write down policies, by using age groups, and the valuation procedures, which was different in each warehouse, dependant on each individual situation.

Stocktake:-
The stocktake was carried out over a two week period using strict cutoff procedures. 
In some warehouses an inventory was made by Brand and Category, and in other warehouses a simple valuation was used by taking the stock at selling price and then reducing each category by an agreed margin.

The Result:-
The final Stock Valuation was given to the Auditors within two weeks of the completion of the count. 
As the valuation was carried out using floor plans and the inventory by bay and pallet no., the valuation was checkable.
Since using National Stocktakers, the Inland Revenue has not once questioned the stocktake results or the write down procedures.