Special provisions apply where there is a change from not recognising a profit or loss on assets to bringing them into account in each period at a fair value (CTA 2009, s. 185). They apply to items which would fall into the definition of trading stock in CTA 2009, s. 163 (broadly, property sold in the ordinary course of the trade). Clearly, trading stock is normally valued in the accounts, so this applies mainly to finance trades like banking and insurance. However, since the introduction of FRS 102, farmers also have the option to value biological assets at fair value.

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