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Goats and goats milk! Accounting and tax treatment

How to I account for clients goats in their accounts

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This sounds like a joke but its not:

Client is thinking of incorporating. She owns goats and makes products using goats milk. What happens to these goats on incorporation? The company will report under FRS105.

Goats are biological assets so will be held as stock at cost? As stock is used up it it released through the P&L normally and hence becomes tax deductible. How does this work with biological assets? The behave more like fixed assets - live for more than one year and are not so much used up like stock, but used in the business to generate milk. FRS105 does not have accounting policies so there are no options really. Does the stock get "depreciated" and if so, how does that depreciation get treated for tax purposes?

Does the tax follow the accounting as normal, or is there some special rules that I am missing. I presume that capital allowances are not available on them but maybe I am wrong.

If there is someone knowledgable and kind out there who could point me in the right direction that would great. Happy to do the research but I know that farming type businesses can get quite specialist and would really benefit from a pointer.

Replies (14)

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By rhino83
08th May 2019 15:33

You may also want to look into the herd basis election.

Thanks (1)
Hallerud at Easter
By DJKL
08th May 2019 15:52

Cannot resist, you say it is not a joke but surely you must be kidding.

Thanks (5)
Replying to DJKL:
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By Kylo Ren
08th May 2019 16:00

Boom!

Thanks (0)
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By SXGuy
08th May 2019 17:41

Depreciation is based on the time it takes to empty the goat of milk.
Reevaluation once full again...

Sorry couldn't resist.

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By Tom Herbert
09th May 2019 09:40

Another example of the nanny state in action :-D

Thanks (3)
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By Vile Nortin Naipaan
09th May 2019 12:35

Has this just a curd?

Thanks (0)
RLI
By lionofludesch
09th May 2019 12:49

This is getting my goat.

Thanks (1)
Replying to lionofludesch:
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By Vile Nortin Naipaan
09th May 2019 13:04

No need to be a gruff Billy.

Thanks (0)
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By sosleepy
09th May 2019 13:03

Read the flocking legislation

Thanks (1)
Hallerud at Easter
By DJKL
09th May 2019 13:25

This is one of the most blatant examples of a post by a Troll seen on Accounting Web, next thing you know the OP will be trying to sell bridging software to the goats.

Thanks (3)
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By Vile Nortin Naipaan
09th May 2019 13:44

Well, it's a beard that some people have goaten completely curried away, but then we all have to make sacrifices.

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By mrme89
09th May 2019 13:55

There is only one GOAT; Lionel Messi.

Thanks (0)
7om
By Tom 7000
10th May 2019 16:24

have you heard of herd accounting its not hard......

Thanks (2)
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