# TAX-11 — Inventory

**Flag: Current** — Verified against the live source. Safe to cite.

**Inventory:** two acceptable valuation methods — fair market value of the entire inventory, or the lower of cost and FMV item by item or by class. The method chosen must be used consistently in later years

## Sources

- Inventory and COGS (primary): https://www.canada.ca/en/revenue-agency/services/tax/businesses/small-businesses-self-employed-income/business-income-tax-reporting/inventory-cost-goods-sold.html
- https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4002/t4002-1.html (mirror): https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4002/t4002-1.html

Jurisdiction: FED · Verified 2026-08-27 · Review: legislative