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Notes on feedstock expenditure for items 6 and 14

Last updated 1 June 2010

Feedstock expenditure items

To find out how much to include at the feedstock expenditure items 6 and 14, first determine the following amounts:

  • feedstock expenditure - expenditure incurred in acquiring or producing materials or goods to be the subject of processing or transformation by the company in relevant research and development activities. It includes expenditure on energy input directly into processing or transforming these materials or goods
  • feedstock input - feedstock expenditure for materials or goods that were the subject of processing or transformation in research and development activities during the year of income
  • feedstock output - the sales proceeds or value of any products obtained during the year of income from processing or transforming the materials or goods the production or acquisition of which were feedstock expenditure. It includes the amount received or receivable for the products sold in arm's length transactions and, if sold in a non-arm's length transaction or not sold, the amount that would have been received if they had been sold in an arm's length transaction.