Section EB 20 — Income Tax Act 2007: Replacement price for low-turnover traders

EB 20 Replacement price for low-turnover traders Financial statements prepared (1) A low-turnover trader who prepares financial statements 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. Financial statements not prepared (2) A low-turnover trader who does not prepare financial statements may determine the value of their closing stock at its replacement price. Establishing replacement price (3) The replacement price is— (a) the market value of the trading stock on the last day of the income year; or (b) the last price that the low-turnover trader paid during the income year to acquire equivalent trading stock. Defined in this Act: financial statements , income year , low-turnover trader , , trading stock Compare: 2004 No 35 s EB 20