How to show stocks on balance sheet?

[rajivkumar]

I’m trying to understand how to show stocks on a balance sheet. From what I know, stocks (or inventory) are considered a current asset and should be listed under the current assets section. The value shown is usually the cost of purchase or production, depending on the accounting method used.


Can anyone explain the proper way to present stocks, and whether adjustments like write-downs or obsolescence need to be shown separately?

 

[Emly]

Stocks (or inventory) are shown on the balance sheet under current assets at the lower of cost or market value. They are usually categorized as raw materials, work-in-progress, and finished goods, reflecting what the company holds for sale or production within a year.

 

[Rick_Grimes]

On a balance sheet, stocks (if owned by the company as investments) are shown under Assets. Short-term holdings go under Current Assets (Marketable Securities), while long-term investments go under Non-Current Assets (Investments). If you mean the company’s own stock, that appears in Shareholders’ Equity as common or preferred stock.