Document ID: chunk:federal_register_of_legislation:C2004C00927:clause:1_13:p5
Version: federal_register_of_legislation:C2004C00927
Segment Type: clause
Provision Reference: sch 1 cl 13 (pt 5/13)
Character Range: 390986–393824

the *value of all your *trading stock on hand at the end of the income year.

 (2) Your assessable income includes any excess of the *value at the end of the income year over the value at the start of the income year.

 (3) On the other hand, you can deduct any excess of the *value at the start of the income year over the value at the end of the income year.

70-40  Value of trading stock at start of income year

 (1) The value of an item of *trading stock on hand at the start of an income year is the same amount at which it was taken into account under this Division at the end of the last income year.

 (2) The value of the item is a nil amount if the item was not taken into account under this Division at the end of the last income year.

Note: For the value of trading stock at the start of the 1997-98 income year, see section 70-40 of the Income Tax (Transitional Provisions) Act 1997.

70-45  Value of trading stock at end of income year

 (1) You must elect to value each item of *trading stock on hand at the end of an income year at:
 (a) its *cost; or
 (b) its market selling value; or
 (c) its replacement price.

Note: An item's market selling value at a particular time may not be the same as its market value.

 (2) The rest of this Subdivision deals with cases where the normal operation of this section is modified, or where a different valuation method may or must be used. The table sets out other cases where that happens because of provisions outside this Subdivision.

Rules about the value of trading stock
Item                                    For this situation:                                                                                                                  See:
  1                                     In working out the inter-corporate dividend rebate, a company can sometimes be treated as having chosen the lowest of the 3 values.  Subsections 46(7A) and (7B) of the Income Tax Assessment Act 1936
  2                                     In working out the attributable income of a non-resident trust estate, trading stock is taken to be valued at cost.                  Section 102AAY of the Income Tax Assessment Act 1936
  3                                     In working out the attributable income of a controlled foreign corporation, the corporation must value at cost.                      Section 397 of the Income Tax Assessment Act 1936
  4                                     Some anti-avoidance provisions reduce the amount that is taken to be the cost of an item of trading stock.                           Subsections 52A(7), 82KH(1N), 82KL(6) and 100A(6B) of the Income Tax Assessment Act 1936

Special valuation rules

70-50  Valuation if trading stock obsolete etc.

  You may elect to value an item of your *trading stock below all the values in section 70-45