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  • Accounting for trading stock

    Trading stock is anything your business produces, manufactures or acquires, for the purpose of manufacturing, selling or exchanging. Livestock is also trading stock.

    Trading stock does not include:

    • standing or growing crops, timber or fruit – these only become trading stock when they are harvested, felled or picked
    • stocks of spare parts held for repairs or maintenance to plant and equipment
    • DVDs owned by a DVD lending business where they are used to earn income by hire or rental, rather than manufacture, sale or exchange
    • consumables used in manufacturing trading stock, such as cleaning agents or sandpaper.

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    Last modified: 03 Apr 2017QC 44440