Inventory accrual means that in financial accounting, in order to accurately reflect the value of inventory, enterprises follow accounting standards and tax laws, and in accordance with industry rules and enterprise cost management principles, they accrue related expenses for inventory in financial statements. Inventory accrual basis is an adjustment method in financial statements, which can have an important impact on the financial situation and operating results of enterprises.

Sunshine City is a leading enterprise in China real estate industry. Its main business scope includes real estate development, property management and decoration services. In the financial statements of Sunshine City, the concepts of strict financial management and enterprise cost control are fully reflected in the provision for inventory depreciation. According to the industry regulations and the principle of cost management, Sunshine City Company accrues the purchase cost, management cost and quality deposit of inventory.

Inventory accrual plays a vital role in the financial statements of enterprises, which can not only supplement the asset impairment of enterprises, but also have a great impact on the cost accounting and tax declaration of enterprises. Inventory accrual system can reflect the actual inventory cost and management expenses in the process of enterprise operation, which is helpful for enterprises to make scientific decisions and avoid financial risks. Therefore, enterprises should make reasonable provision for inventory expenses according to industry regulations and cost management principles to ensure the authenticity and objectivity of financial statements.