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EB 14: Low-turnover valuation methods
or “Ways to value inventory for low-turnover traders”
You could also call this:

“How low-turnover traders can value their closing stock”

If you’re a low-turnover trader, you can choose to value your closing stock at cost. This means you need to include and allocate costs in one of these ways:

You can follow generally accepted accounting practice. This is a set of rules that accountants use to record financial information.

You can use the method described in section EB 16. This section talks about how to value your stock.

You can follow the rules in section EB 17. This section gives you another way to value your stock.

You can use the method outlined in section EB 18. This section provides yet another option for valuing your stock.

You get to pick which of these four ways you want to use to figure out the cost of your closing stock.

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Next up: EB 16: Cost allocation: cost-flow method for low-turnover traders

or “How low-turnover traders calculate their trading stock costs”
Next

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

EB 15Cost for low-turnover traders

  1. A low-turnover trader may determine the value of their closing stock at cost. If the low-turnover trader chooses this method, they must include and allocate costs under—

  2. generally accepted accounting practice; or
    1. section EB 16; or
      1. section EB 17; or
        1. section EB 18.

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