Average method of valuing inventory; bookkeeping
Sec. 12. (a) A taxpayer who elects to use the average method
provided by section 11 of this chapter shall keep books which clearly
show the inventory on hand and the true tax value of that inventory
as of the last day of each accounting period. The books shall be kept
in accordance with the rules of the department of local government
finance.
(b) If a taxpayer adopts the average method of valuing inventory,
he shall use at least twelve (12) uniform accounting periods for each
calendar year. The accounting periods must represent the regular and
ordinary accounting practice of the taxpayer. If the taxpayer was
engaged in business for only a portion of the preceding calendar
year, the accounting periods must be such that there would be twelve
(12) or more if used for a full year.
(c) The department of local government finance shall promulgate
uniform rules for determining the fair, equitable, and practical true
tax value of average inventories.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.24-1986,
SEC.4; P.L.90-2002, SEC.27.
Last modified: May 28, 2006