Commentary

B5.168 Grants in relation to stock

Business tax
Business tax | Commentary

B5.168 Grants in relation to stock

Business tax | Commentary

Farm stock—grants and subsidies

B5.168 Grants in relation to stock

Grants and subsidies which are directed towards specific expenses should be regarded as reducing those expenses in the farm accounts. If those expenses are in turn included in the cost, for stock valuation purposes, then the amount included should be the net cost after deducting the related grants or subsidies.

Generally, grants and subsidies intended to augment the sale prices of stocks should be taken into account in calculating the net realisable values of those stocks1.

For the treatments of grants, subsidies and payments for land management generally,

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