MEOW
Philippines Corporation formed a joint venture with TIGERWORLD Africa, the largest
wild cat park in the world, to create TIGERWORLD Philippines that will be
located in Palawan. MEOW purchased 25 tigers from TIGERWORLD Africa. Each tiger
costs P 2,000,000.
These
wild cats were all approximately five years old at the time of purchase and
have an expected total lifespan of 25 years. Meow also paid P 750,000 for marine
insurance, P 1,500,000 for veterinary costs, and P 5,000,000 to transport the
animals from to Palawan.
MEOW also purchased a
15-hectare land for P 20,000,000 and spent P 10,000,000 to create the exhibit,
which is expected to last 30 years and have no salvage value.
How should the company account for the foregoing costs /
expenses?
Note: See the Next post for the complete solution and discussion.
http://theaudituniverse.blogspot.com/2016/05/accounting-for-living-animals-ias-16-or.html
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