04-04-2007, 08:44 PM
Dear,
A newly born cow is not a fixed asset and needs not revaluation in that context.
Animals are included in the definition of biological assets as per IAS 41. Biological assets are required to be stated in balance sheet at fair value.
Any gain/loss resulting from a fair valuation has to be refelected in profit and loss account.
Therefore, at the balance sheet date you will count all animals either procured or newly born, assess their fair values and incorporate the fair valuation in the balance sheet. Any increase or decrease from last fair valuation will be taken to profit and loss account as current period's gain or loss.
Bilogical asset could be categorized as long-term asset or short term asset in accordance with the management's intention to hold it or due to the nature of the asset. For example trees, if not intended to be sold are long term biological assets while trees, if intended to be sold are short term biological assets. But the crops which normally take only six months to mature (except sugarcane) are the short term bilogical asset.
For further clarity see IAS 41.
Best regards,
Kamran.
A newly born cow is not a fixed asset and needs not revaluation in that context.
Animals are included in the definition of biological assets as per IAS 41. Biological assets are required to be stated in balance sheet at fair value.
Any gain/loss resulting from a fair valuation has to be refelected in profit and loss account.
Therefore, at the balance sheet date you will count all animals either procured or newly born, assess their fair values and incorporate the fair valuation in the balance sheet. Any increase or decrease from last fair valuation will be taken to profit and loss account as current period's gain or loss.
Bilogical asset could be categorized as long-term asset or short term asset in accordance with the management's intention to hold it or due to the nature of the asset. For example trees, if not intended to be sold are long term biological assets while trees, if intended to be sold are short term biological assets. But the crops which normally take only six months to mature (except sugarcane) are the short term bilogical asset.
For further clarity see IAS 41.
Best regards,
Kamran.
