Show at C the total value of all trading stock on hand at the beginning of the income year or accounting period for which the trust tax return is being prepared. The amount shown by the trust at C is the calculated value for income tax purposes under section 70–40, or for small business entities using the simplified trading stock rules subsection 328-295(1) of the ITAA 1997). The opening value of an item of stock must equal its closing value in the previous year. If you did not have any trading stock in the previous year, the value of trading stock at the start of the year is zero. This might occur in the case of a new business or in the first year you have trading stock.
Include motor vehicle floor plan stock and work in progress of manufactured goods.
Do not include any amount that represents opening stock of a business that started operations during the income year. Show this amount in Cost of sales at E item 5.