I am currently putting together a set of accounts for a farmer whos rears alpaca's please could you tell me when putting the value of the animals on the balance sheet can i put this down as the price he bought them for?
You need to be very careful when preparing accounts for farmers as special rules may apply. HMRC have special procedures that must be adhered to with regard to farm stock valuation. There is a help sheet that you can download from the HMRC website ( I think it is IR232).
thank you for that, I will be advising the client to use the services of an accountant to complete the ct600 and to file accounts on companies house, but I wanted to make sure that I posted the transactions accurately to start with. From reading the form IR232, I understand that you can put through the value of the alpaca's at the cost price as long as it doesn't fall below the nrv and also you can put on the balance sheet the direct cost associated with the purchase of the animals including mating, injections and care of the animals. It does sound complicated, and thank you for your help, please correct me if I have made any mistakes from my understanding, still learning!.
Therefore am I correct by posting the following as part of the asset value, these are the mains item I have came across:
Insurance for the animals ear tags rent and care of the animals weaning vaccinations microchips
-- Edited by lor on Monday 6th of July 2009 06:15:10 PM
I haven't done any accounts work for farmers as such and so I don't think I'm in a position to say whether you are right or wrong. I know from my work over the years that when it comes to farming, agriculture, antique dealers etc there are special rules when it comes to the final accounts and stock valuations. If the farmer that you are going to do bookkeeping work for has an accountant that has some experience in the agricultural field then he or she would know about the stock valuation. Or maybe someone else on the forum has experience in bookkeeping in the farming sector. I do know that the farmer would have to keep a detailed record of his stock valuations as part of his accounting records.
