7. Variation in stocks (only if there is an increase in stocks at the end of the year)

The variation in stock is the difference between the initial stock (merchandise and raw materials) and the final stock (goods and raw materials) of the accounting period, the latter valued at their acquisition price.

The purpose of the variation in stock is to determine the consumption of stock for the year and to adjust the result. Therefore, when the valuation of stock at the beginning of the year is lower than at the end of it, this difference must be reflected as income since it means that part of the stock acquired in the year has not been consumed at the end of it.

Unlike the above, when the valuation of the initial stock is greater than the valuation of the final stock, this negative variation must be reflected as an expense. In this case, this variation means that more stock has been consumed in the year than was acquired throughout the year, also considering the stock that appeared in the inventory on 1 January.

See within "Tax-deductible expenses" the section on “ Change in stock ” as well as the registration and valuation rule 10 of the General Accounting Plan, approved by Royal Decree 1514/2007, of November 16 ( BOE of the 20th), dedicated to the valuation of stock. See also the Resolution of April 14, 2015, of the Institute of Accounting and Auditing of Accounts, which establishes criteria for determining the cost of production.