Net income from a primary production enterprise—treatment of trading stock
1209B Net income from a primary production enterprise—treatment of trading stock
For the purposes of this Division, if:
an entity carries on a primary production enterprise; and
the value of all the trading stock on hand at the end of a tax year is greater than the value of all the trading stock on hand at the beginning of that tax year;
the entity’s income for that tax year in the form of profits from the enterprise is to include the amount of the difference in values.
For the purposes of this Division, if:
an entity carries on a primary production enterprise; and
the value of all the trading stock on hand at the end of a tax year is less than the value of all the trading stock on hand at the beginning of that tax year;
the entity’s income for that tax year in the form of profits from the enterprise is to be reduced by the amount of the difference in values.
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