Section 174: Meaning of “trading stock”
724.This section defines trading stock. The definition applies:
in this Chapter;
in sections 135 and 136 (films and sound recordings);
in section 236 (adjustment income); and
in section 252 (post-cessation receipts).
725.The section is based on sections 100(2) and 101(3) of ICTA.
726.Section 101(3) of ICTA is invoked by section 100(2) and is concerned with valuation of incomplete services at the time of “discontinuance”. So the definition in this section refers to incomplete services at the “time of the cessation”.