Simplifying livestock counts for tax efficiency

For every farming business in New Zealand, the ability to prepare correct valuations for tax purposes is essential. This relies on an accurate calculation of livestock values that takes into account sales, purchases and other reconciliation checks.

BDO Gisborne Ltd, leaders in farm accounting, offer through their sister company Gisborne Business Solutions Ltd, a spreadsheet-based livestock valuation model that simplifies the calculation of livestock values for tax purposes.

The model has been widely used by accounting firms around the country for the past 20 years and is regularly updated and enhanced based on BDO Gisborne’s experience in their large farm accounting practice. It is compatible with Excel 2007 and later versions only.

Benefits

Enter livestock tallies and immediately get the correct tax valuation and tax effect of the various options available - the easy way - no mistakes - easy to check - and you pay the lowest tax.
Options to use various livestock valuation options contain within legislation to ensure tax efficiency
Provides the ability to complete livestock valuation scenarios which is invaluable for succession planning
Reconciliation module checks the integrity of stock numbers on a class-by-class basis with sales, purchases, deficiencies and surpluses.
Tallies flow through automatically to all modules.
Model calculates high-priced livestock values.
Model allows valuation on a first-in first-out (FIFO) basis for National Standard Cost (NSC) where no stock are in the Herd Scheme.
Simple one page data entry sheet for modelling the costs of moving additional stock to the Herd Scheme.
The Model includes valuations of livestock compatible with NZ IAS 41 – Agriculture for those applying differential reporting. Valuations include National Average Market Value (NAMV’s) as a proxy for market value and a pure NSC calculation as a proxy for cost. No additional data entry is required for these valuations to be produced, a simple check box is used to selection between cost and market value.

Pricing

The Livestock Valuation Model is available for $1,320 (excluding GST). Updates of the model will be available each year – the current update price is $550 (excluding GST).