(1) In preparing the inventory, it is also permissible to assess the stock of assets in terms of their nature, quantity and value by random sampling, using recognised mathematical-statistical methods. The procedure must be in keeping with the principles of proper accounting. The informational validity of the inventory prepared in this way must be equivalent to the informational validity of an inventory prepared by means of physical stocktaking.
(2) In preparing the inventory as per the close of a financial year, it is not necessary to physically take stock of the assets as per that point in time insofar as it is assured, by applying some other procedure that is in keeping with the principles of proper accounting, that the existing stock of assets can be determined in terms of their nature, quantity and value as per that point in time also without physically taking stock.
(3) Assets are not required to be included in the inventory as per the close of a financial year if
1. the merchant has itemised them in a separate inventory in terms of their nature, quantity and value based on the stock physically taken of them, or based on some other procedure permissible under subsection (2), and said separate inventory has been prepared as per a day within the last three months immediately preceding the close of the financial year or the first two months following it, and if
2. it is assured, based on the separate inventory and by applying an updating process or a back-calculation process that is in keeping with the principles of proper accounting, that it is possible to value properly the stock of assets existing as per the close of the financial year for said point in time.