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2012 Unit 5 Profit computation - s

Depending 23 valuation of securities in the valuation

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Unformatted text preview: urities in the Valuation Banking & Securities Industries Banking Securities held for dealing purposes are usually carried at market value. market This basis, if consistently applied, is This consistently acceptable. (DIPN1 (revised) – para 14). (DIPN1 24 Change in the Basis ( hange Valuation Valuation ) of Change from a valid basis to a valid hange valid basis. basis Change from a non-valid basis to valid hange non-valid basis. basis Other changes (see p. 348) 25 Change from a Valid Basis to a Valid Basis Basis A fundamental principle in stock valuation for tax fundamental purpose is consistency. purpose consistency Therefore a change from a valid basis is not to be Therefore admitted unless good reasons are given. The admitted reason must not be for tax advantage. E.g. the change is due to circumstances beyond E.g. the control of the taxpayer, such as the Acquisition Acquisition by another group of companies, or or Change in the nature of trade. 26 Change from a Valid Basis to a Change Valid Basi...
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