Stock valuation

The following stock valuation methods are permitted: valuation based on cost, valuation based on cost or market value (whichever is lower), or the base stock method. Valuation at cost is in accordance with sound business practice, unless the market value is significantly lower than the cost. In this system unrealized profit is ignored, while unrealized losses can be taken into account directly. The value of the stock can be determined by either the FIFO or LIFO method. Subject to certain conditions, case law also permits the use of the base stock system.