Does the value inreases of current inventories such as gold ; precious stones and foreign currencies would be rcognized and would be taxable at the end of the fiscal year while would be carried on to the next year balance sheet as it is ???
2006-07-31 21:05:02 · 4 answers · asked by happy man 1 in Business & Finance ➔ Taxes ➔ United Kingdom
Badly phrased question!?Attempted answer,however.Only way u could have these values be recognised and carried for next year would to have the taxes deferred,legally,as income or capital gains.U could then keep the current inventories,in storage etc.BUT U Could Get larger taxes or lower values as ,laws and values fluctuate!don't gamble with tax people.,U could end up losing some serious money.
2006-07-31 21:22:45 · answer #1 · answered by xkss3 3 · 0⤊ 0⤋
If you are going to ask an accountant a question, please phrase it in a manner that is understandable. If the value of the items are taxable at the end of the fiscal year, while (WHAT) would be carried to the next year balance sheet as it is??? What in the hell are you trying to ask? If you are trying to ask if the evaluation of the items would be non taxable for the next fiscal year on the basis of their value of this year if they did not increase in value, the answer would be yes, but you will have to see if the price of gold and currencies either increased or decreased by the end of next year, and base their valuation on the price at that time. If they decrease, you owe nothing, if they increase, you will owe more taxes on the inventory, but only a percentage of this year to next year, not the whole valuation, only the percentage of the increase in value from this year to next.. You would carry the current value on the balance sheet, and wait til the end of next year to see if there is any increase/decrease..but only carry over the value of this year's balance sheet til the end of next year.
2006-07-31 21:29:47 · answer #2 · answered by 420Linda 4 · 0⤊ 0⤋
Just like we are taking advantage of depreciation, we can appreciate the stock and needs to be shown in Balance sheet. If it is your trade inventory, you need it one every year.If it is your asset appreciation can be done once in two year or three. You can get more inputes from CPA.or CA
2006-07-31 21:13:45 · answer #3 · answered by ponnu 1 · 0⤊ 0⤋
No. In accounting, the general rule is that you always list the items at what you bought them for. Example: If you buy a house for 250,000 and next year it is worth 300,000, you would still list it at what you paid (250,000). Carry it over as is.
2006-07-31 21:12:36 · answer #4 · answered by silverjacket9 3 · 0⤊ 0⤋