Accountancy stock valuations

Viewtodiefor

Lads anyone got any idea what the valuations should be for stock on the books? E g dairycow, suckler cow, year n half bullocks, weaklings etc. if I'm right they are entered at half their value but how would you determine their actual value and is it open to debate?

Farmer Pudsey

Viewtodiefor wrote: »

Lads anyone got any idea what the valuations should be for stock on the books? E g dairycow, suckler cow, year n half bullocks, weaklings etc. if I'm right they are entered at half their value but how would you determine their actual value and is it open to debate?

It is really a case of what ever suits you. I have then in at near full value but you could have them less than half as well .

Stationmaster

Yea, I do a good few farm accounts and, to be honest, the figure that suits the farmer best is the one that is put in. It's very subjective anyway and once you can reasonably argue the value you have them included at with the Revenue if they ever come checking then you'll be fine.

lakill Farm

I value bovine stock in following sub headings
0-6 months
6-12months
12 - 24months
cows
heifers
Bull (breeding)


but every enterprise is different

just once you use the same value each year for the same headings


Sheep

Ewes
Breeding ramsd
Hoggets
Lambs under 6 months
Lambs 6- 12 months

Viewtodiefor

lakill Farm wrote: »

I value bovine stock in following sub headings
0-6 months
6-12months
12 - 24months
cows
heifers
Bull (breeding)


but every enterprise is different

just once you use the same value each year for the same headings


Sheep

Ewes
Breeding ramsd
Hoggets
Lambs under 6 months
Lambs 6- 12 months

Had chat with accountant yesterday about this. His reason for bringing up the valuations was. He thought valuations were bit low eg 650 for cows . Brought up to 800. And said we bought in cows at 1600 so if we had an audit it could be a problem, also we got tax refund for the last two years (as tax is paid on other income through paye)and this year we will pay a small bit , he thought this would keep it under the radar of revenue.

Any thoughts?

Timmaay

Certainly a dairycow bought in for 1800quid can very quickly lose alot of that value, if she say lost aload of bcs after calving etc, gets mastitis etc etc. As far as I'm concerned, the price paid for a cow, and her actual market value while milking in your herd often have very little resemblance, and I wouldn't have too much problem explaining this to a taxman.

Viewtodiefor

Timmaay wrote: »

Certainly a dairycow bought in for 1800quid can very quickly lose alot of that value, if she say lost aload of bcs after calving etc, gets mastitis etc etc. As far as I'm concerned, the price paid for a cow, and her actual market value while milking in your herd often have very little resemblance, and I wouldn't have too much problem explaining this to a taxman.

Will they accept that? He was also saying that if u have an audit they will view it as a failure if they leave with nothing!

The Real Elmer Fudd

Viewtodiefor wrote: »

Will they accept that? He was also saying that if u have an audit they will view it as a failure if they leave with nothing!

If you get an audit you'll be getting the cheque book out regardless. They very rarely go home empty handed. Remember they have to justify their day out to their superiors not to mention their ridiculous salary.

The Real Elmer Fudd

We had an audit case where the tax inspector looked to see the herd register to compare animals sold and bought in the period to the numbers in the accounts. What the farmer hadnt told us was he had sold 2 heifers to a local butcher for cash and put the cash in his back pocket. The tax inspector left with a cheque of €2000 comprising of tax penalties and interest on the sale of the 2 heifers. He got a total of €1600 cash from the butcher for the heifers.

Timmaay

The Real Elmer Fudd wrote: »

If you get an audit you'll be getting the cheque book out regardless. They very rarely go home empty handed. Remember they have to justify their day out to their superiors not to mention their ridiculous salary.

Certainly seems true. We had an audit 15yrs ago, they caught us for a grand or so for having heifers under an incorrect heading, I can't remember what exactly was wrong but it was some small genuine mistake on our behalf, but ignorance certainly isn't a valid excuse in their book.