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EC 15: Determining national average market values
or “How the Commissioner sets yearly average market values for farm animals”
You could also call this:

“How to value herd livestock at the start and end of the income year”

When you value your herd livestock at the end of the income year, you can use either its herd value for that year or its herd value multiplied by its herd value ratio if you’ve chosen to use one.

At the start of the income year, you need to value your herd livestock in a specific way if three things are true:

  1. You used the herd scheme to value your livestock last year
  2. You still have the livestock at the beginning of this year
  3. You haven’t decided to use a different method to value the livestock this year

If all these things are true, you need to value your herd livestock at the start of the year using either its herd value for the current year or its herd value for the current year multiplied by its herd value ratio from last year, if you use one.

This rule for valuing your livestock at the start of the year is more important than what section DB 49(3) says about adjusting opening values.

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Next up: EC 17: Herd value ratio

or “Calculating the value of farm animals using a specialised ratio”
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Part E Timing and quantifying rules
Valuation of livestock: Herd scheme

EC 16Valuation under herd scheme

  1. The closing value of herd livestock in an income year is either its herd value for the income year or, if a herd value ratio is adopted, its herd value multiplied by its herd value ratio.

  2. The opening value of herd livestock in an income year is determined under subsection (3) if a person—

  3. has valued the livestock under the herd scheme in the previous income year; and
    1. has the livestock on hand at the start of the income year; and
      1. has not chosen to value the livestock by a different method for the income year.

        1. The opening value of herd livestock in an income year is either its herd value for the income year or, if the person has adopted a herd value ratio, its herd value for the income year multiplied by its herd value ratio for the previous income year. This subsection overrides section DB 49(3) (Adjustment for opening values of trading stock, livestock, and excepted financial arrangements).

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        Notes
        • Section EC 16(3): amended (with effect on 1 April 2008), on (applying for the 2008–09 and later income years), by section 22(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).