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Income Tax Act 2007

Timing and quantifying rules - Valuation of trading stock (including dealer’s livestock)

EB 12: Valuing closing stock consistently

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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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1514310.

Topics:
Money and consumer rights > Taxes
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"How to calculate the lowest possible value of your unsold goods"

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EB 13: Low-turnover valuation, or

"Valuing stock for small businesses with low turnover"

Part E Timing and quantifying rules
Valuation of trading stock (including dealer’s livestock)

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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).