ABSTRACT
The basic principle of BEN 19 is that stocktaking should be based on the lower of cost or net realisable value. This is usually a cost of production basis, ie the actual costs, but the deemed cost method is acceptable where actual costs are not known and stock is then valued on the percentages given:
Cattle 60% of open market value Sheep 75% of open market valuePigs Harvested crops 75% of open market value
Harvested crops include hay, silage, straw (produced on the farm and not purchased). Growing crops should be valued on a cost of seed, cultivation, fertiliser and spraying basis, any fertiliser applied to
pasture (and not grazed or crop taken) and for acts of husbandry such as orchard spraying should be included at cost. Enhancement value is not included. CAAV are expressly recognised in para 3.1.5.1 of BEN 19 as the basis of establishing actual costs of production.
