Page 9 - Trading Stock

Closing Stock – S22(1): Valuation

 Ito IFRS:

 Stock is recorded at the lower of cost or NRV

 Ito tax:

 Stock is recorded at COST price

 LESS: Amount by which value of stock has

diminished due to damage, deterioration,

change in fashion

 Downward adjustment to cost – must be

disclosed to SARS in tax return,

 with reasons for using lower value and Practice
Note 36
 how lower value was arrived at 9