Hi,
Please allow me to ask a very basic question :
You've just started a business, and you've spend in the first FY 100€ in wages, bought 100€ of raw materials and 100€ of depreciation of machine to produce a finished product of 300€. And assuming that you didn't sell the product at the end of the FY. In case that you've chosen a P&L by nature, the presentation would be :
Revenue : 0
Changes in inventory +300
Purcahse of raw materials : -100
Employee benefits : -100
Depreciation of machines : -100
PBT : 0
And if you've chosen the P&L by function, it would be :
Revenue : 0
COGS : 0
PBT : 0
Is that right?
Thanks
Inventory
Re: Inventory
seems ok to me