Process of taking farm inventory

There are two steps involved in taking farm inventory

1. Examination of physical assets- land, buildings, fences, equipment, livestock, supplies etc.
2. Valuation of physical assets- each of these items should be valued using an appropriate valuation method. The important and commonly used methods for the valuation are as follows:

• Cost-Depreciation
• Valuation at market price
• Net selling price
• Replacement cost-depreciation
• Income capitalization
• Valuation at cost
• Replacement cost