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EB 11: Market selling value
or “How to calculate the lowest possible value of your unsold goods”
You could also call this:

“Consistent method for valuing end-of-year stock”

When you decide how much your closing stock is worth, you need to be consistent. You can work out the value using the cost, a lower selling price, or how much it would cost to replace the stock. No matter which method you choose, you must follow the rules set out in NZIAS 8. NZIAS 8 is a set of accounting standards that tells you how to be consistent and what information you need to share about your stock valuation. If NZIAS 8 is replaced by a new standard in the future, you would need to follow that new standard instead.

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Next up: EB 13: Low-turnover valuation

or “Valuing stock for small businesses with low turnover”
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Part E Timing and quantifying rules
Valuation of trading stock (including dealer’s livestock)

EB 12Valuing closing stock consistently

  1. In determining the value of closing stock at cost, discounted selling price, or replacement price, a person must comply with the consistency and disclosure requirements of NZIAS 8 or an equivalent standard issued in its place.

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Notes
  • Section EB 12: amended, on , by section 351(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
  • Section EB 12 list of defined terms NZIAS 8: inserted, on , by section 351(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).