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EC 1: Application of this subpart
or “This section explains when and how the livestock valuation rules apply to businesses”
You could also call this:

“How to value your livestock at the end of each tax year”

At the end of each income year, you need to work out how much your livestock is worth. You must use a method that is allowed for you under this part of the law.

The value you work out has two important uses. First, it’s the closing value of your livestock for the current income year. This is used in section CH 1, which deals with adjusting the closing values of things like trading stock and livestock. Second, it becomes the opening value of your livestock for the next income year. This opening value is used in section DB 49, which deals with adjusting the opening values of similar items.

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Next up: EC 3: Livestock valuation methods

or “How to calculate the value of your animals for tax purposes”
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Part E Timing and quantifying rules
Valuation of livestock

EC 2Valuation of livestock

  1. A person must determine the value of their livestock at the end of each income year by a method that is available under this subpart for them to use.

  2. The value determined under subsection (1) is—

  3. the closing value of the livestock for the income year for the purposes of section CH 1 (Adjustment for closing values of trading stock, livestock, and excepted financial arrangements); and
    1. the opening value of the livestock for the next income year for the purposes of section DB 49 (Adjustment for opening values of trading stock, livestock, and excepted financial arrangements).

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