食品案例VALUATION OF TRADING STOCK Facilitating Wine Industry Growth.pdfVIP

VALUATION OF TRADING STOCK Facilitating Wine Industry Growth Potential Winemakers Federation of Australia August 2001 Winemakers’ Federation of Australia - Valuation of Trading Stock August 2001 WINEMAKERS’ FEDERATION OF AUSTRALIA VALUATION OF TRADING STOCK Maximising Wine Industry Growth Potential TABLE OF CONTENTS 1) Executive Summary……………………………………………………………………………….3 2) Background 4 3) Supply Projections Add to the Urgency 4 4) Current Taxation of Trading Stock 4 5) Negative Cash Flow Impact on Australian Wine Industry 5 6) Recommended Valuation of Wine Closing Stock – nominal value 7 Appendix 1: Alternative Valuations of Wine Closing Stock 9 - The use of direct costing rather than absorption costing 9 - Deferral of tax collection 10 - Averaging basis of stock increases 10 - Closing stock value only included in respect of bottles held ready for sale 10 2 Winemakers’ Federation of Australia – Valuation of Trading Stock August 2001 1) Executive Summary VALUATION OF TRADING STOCK Facilitating wine industry growth potential The valuation of trading stock for taxation purposes is a disincentive for investing in the wine industry – an industry characterised by high stock levels and low stock turnover. A better solution to the current discriminatory stock valuation method would enable wineries to capitalise on international quality wine growth opportunities and would assist in diminishing the impending oversupply of winegrapes. Most importantly, the proposed solution would only defer taxation – it will not vary the amount of net income on which the winemaker will ultimately pay tax. The fut