Inventory is a crucial component in the financial statements of trading companies because it has a direct impact on revenue and profit. This study aims to determine the measurement, recognition, and presentation practices of inventory applied at Suryamart Sambit and assess their compliance with Financial Accounting Standards (PSAK) No. 14. This study also aims to analyze the contribution of inventory accounting practices to the optimization of the company's profits. The research subject is Suryamart Sambit, with a focus on examining the implementation of its inventory management practices. The research method used is descriptive qualitative. Data was collected through interviews, direct observations, and documentation of inventory reports and financial statements.
The results of the study indicate that the inventory recording method used is perpetual with the FIFO valuation method. Inventory is recognized as an expense in the same period as revenue recognition, and the decrease in net realizable value has also been recognized as an expense. However, the measurement of inventory in terms of cost components only includes purchase costs and does not cover all cost components such as conversion costs and other costs. In terms of presentation, inventory is shown in the balance sheet, but the opening and closing inventory values are not separately disclosed in the income statement. Inventory management efficiency is reflected in the increase in inventory costs in line with the increase in profit, as well as the high inventory turnover rate. After conducting an analysis of inventory management implementation at Suryamart Sambit, it was found that, in general, it has followed the provisions of PSAK No. 14, although there are still shortcomings in terms of measurement and presentation. The implementation of inventory accounting in accordance with standards has proven to play an important role in improving the accuracy of financial statements and the effectiveness of profit generation.
Keywords: Inventory, PSAK No. 14, FIFO Method, Profit Optimization.