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closing stock - horses

Client runs a stud breeding horses for sale as race horses. 

Closing stock consists of 15 horses, some racehorses, some broodmares, some foals.

I am reviewing the nrv against cost on a horse by horse basis.  Is that correct - i.e. you dont treat the group of horses as a class and compare cost and nrv in total?

Also, where the nrv is lower than cost, where do I post the difference to? is it treated as realised or unrealised?

Thanks

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By imbs
08th Jan 2013 20:19

Thanks
Ive been through it and although it gives me some background I can't quite get my head around the book keeping.
Broodmare is pregnant - her value includes nomination fee
Gives birth - TFr nomination fee to foal
Foal is valued to yearling at nomination plus cost of keeping
Once transferred to racing stock, deemed sale at OMV - so is the profit on this taxable at date of transfer???
When racing stock - all use is tax free. If sold the profit is tax free ( because most likely loss making)
Not sold - Transfer back to stud stock at OMV. If sell at Market - taxable profit
If keep as stallion for bloodline, continue to check cost v nrv each year OR is it fixed asset at this point? Write off over 11 years, tax deductible?
Broodmares, transfer back to stud stock at OMV after racing career. Write off over 11 years as fixed asset?

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