Section EB 10 — Income Tax Act 2007: Replacement price

EB 10 Replacement price Valuation at replacement price (1) A person may determine the value of their closing stock at its replacement price if they use replacement price for their trading stock in their financial statements. Establishing replacement price (2) The replacement price— (a) is— (i) the market value of the trading stock on the last day of the income year; or (ii) if there is no such market value, the last price that the person paid during the income year to acquire equivalent trading stock; and (b) does not include an amount of input tax for the supply of the replacement trading stock to the person. Defined in this Act: closing stock , financial statements , income year , input tax , , trading stock Compare: 2004 No 35 s EB 10