From an accounting point of view, the assets of the nature of inventories are valued at the book value, less the impairment adjustments found. Impairment adjustments are also found for stocks without movement. If the book value of the inventories is higher than the inventory value, the value of the inventories decreases to the net realizable value, by establishing an adjustment for depreciation.
Consequently, a commission (usually, on the occasion of the inventory) will proceed to verify them and will record in a report their status together with the proposal to make adjustments for depreciation, the company registering an adjustment for depreciation not by direct decrease of stock but by using an account to adjust its value.
From a fiscal point of view, the adjustments related to stocks do not fall into the category of fiscally deductible provisions, as provided in art. 22 of the Fiscal Code. Expenses recorded as a result of the establishment of inventory depreciation provisions are not deductible when calculating taxable profit.
The income from the cancellation of the depreciation provision, registered in account 7814, will be non-taxable income when calculating the taxable profit.