Section EB 3 — Income Tax Act 2007: Valuation of trading stock

EB 3 Valuation of trading stock Valuation method (1) A person who carries on a business must determine the value of their trading stock at the end of each income year by a method that is available under this subpart for them to use. Use of value (2) The value determined under subsection (1) is— (a) the closing value of the trading stock for the income year for the purposes of section CH 1 (Adjustment for closing values of trading stock, livestock, and excepted financial arrangements); and (b) the opening value of the trading stock for the next income year for the purposes of section DB 49 (Adjustment for opening values of trading stock, livestock, and excepted financial arrangements). Excepted financial arrangements valued at cost (3) Despite anything in this subpart, the value of any trading stock that is an excepted financial arrangement must be determined under subpart ED (Valuation of excepted financial arrangements). Defined in this Act: business , excepted financial arrangement , income year , , trading stock Compare: 2004 No 35 s EB 3