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?