The guidance in this chapter includes not only information on
the acceptable valuation bases but also some descriptive paragraphs
to give a feel for the important factors in a stock valuation.
Stock valuation can never be absolutely precise, with a number of
practical considerations affecting the accuracy of the estimate.
SSAP9 provides the starting point for stock valuation for tax
purposes, but you should note that it does not prohibit methods
such as last in first out (LIFO) for costing stock. LIFO is
not an allowable method for valuing stock for tax
There is extensive guidance on valuing farm stock in IR help sheet 232 - formerly BEN19.
There is more detailed guidance on motor dealers stock at BIM52001.
|BIM33110||Tax treatment of trading stock: Lord Nolan in Threlfall v Jones|
|BIM33115||The valuation bases|
|BIM33120||FIFO not LIFO: Minister of National Revenue v Anaconda American Brass Ltd|
|BIM33125||Non-allowable bases of valuation|
|BIM33130||Brief summary of SSAP9|
|BIM33132||International Accounting Standard 2 Inventories|
|BIM33135||Lower of cost and net realisable value: cost|
|BIM33140||Lower of cost and net realisable value: net realisable value|
|BIM33145||Net realisable value: use of formulae, slow moving stock, acceptable accuracy|
|BIM33155||Valuing long term contracts|
|BIM33160||Mark to market or marking to market|
|BIM33165||Professional work-in-progress: general principles|
|BIM33170||Professional work-in-progress: chargeable staff and overheads|
|BIM33175||Professional work-in-progress: valuation: reduction to cost or net realisable value|
|BIM33180||Professional work-in-progress: valuation: payment uncertain|
|BIM33185||Professional work-in-progress: income recognition and debtors|
|BIM33190||Depreciation in stock|
|BIM33199||Change of accounting or tax basis of stock valuation|