Published on 23 May 13
by TASMANIAN DIVISION, THE TAX INSTITUTE
This paper looks at some aspects of accounting for trading stock which are particularly applicable to the alcohol industry, including:
- at what stage in the production cycle do grapes, bulk wine and/or packaged wine become trading stock from the aspect of the grower and the winemaker?
- do the same rules apply to the production of spirits?
- how are the absorption cost rules to be applied for cellared wine?
- can trade stock values be adjusted for anticipated returns, eg due to cork taint or unintended secondary fermentation?
Gil is a Principal of MGI Sydney. With over
40 years’ experience in tax consulting he specialises in providing
advice to both clients and other practitioners in the SME segment,
particularly on the CGT issues associated with mergers and
acquisitions. Gil is a past President of The Tax Institute and current
President of the Asia Oceania Tax Consultants Association.
- Current at
06 August 2012