| Commentary

274 Valuation of trading stock

| Commentary

(d) Trading stock

274 Valuation of trading stock

Where a reorganisation includes the transfer of a business, in many cases this will include the transfer of trading stock. As the transfer is usually made in exchange for the issue of shares in the acquiring company, the transfer of trading stock may be treated as being for consideration and therefore, strictly speaking, the stock should be transferred at market value1. This may cause considerable problems, however, where the stock involved includes land and buildings. On the other hand, the transferring company is not itself receiving any consideration for the

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to LexisLibrary or register for a free trial