SOLUTIONS AND DISCUSSIONS:
[See Accounting for Living Animals IAS 16 or IAS 41: Illustrative Problem]
http://theaudituniverse.blogspot.com/2016/04/accounting-for-living-animals-ias-16-or.html
The following chart summarizes the accounting treatment on Living Animals:
Using the chart above it is appropriate for the entity (MEOW Philippines Corporation) to classify and present their living animals (tigers) Property, Plant and Equipment (IAS 16) rather than as Biological Assets under IAS 41
Under IAS 16, these living animals will be measured initially at COST. Subsequently, these items will be measured using either Cost Model (cost less any accumulated depreciation and any accumulated impairment losses) or Revaluation Model (Revalued amount less any subsequent accumulated depreciation and subsequent accumulated impairment losses), depending on the entity’s accounting policy.
Thus, assuming the entity chose COST MODEL to account for their Property, Property and Equipment, the following entries shall be provided by the MEOW Philippines Corporation for the current year:
http://theaudituniverse.blogspot.com/2016/04/accounting-for-living-animals-ias-16-or.html
The following chart summarizes the accounting treatment on Living Animals:
Using the chart above it is appropriate for the entity (MEOW Philippines Corporation) to classify and present their living animals (tigers) Property, Plant and Equipment (IAS 16) rather than as Biological Assets under IAS 41
Under IAS 16, these living animals will be measured initially at COST. Subsequently, these items will be measured using either Cost Model (cost less any accumulated depreciation and any accumulated impairment losses) or Revaluation Model (Revalued amount less any subsequent accumulated depreciation and subsequent accumulated impairment losses), depending on the entity’s accounting policy.
Thus, assuming the entity chose COST MODEL to account for their Property, Property and Equipment, the following entries shall be provided by the MEOW Philippines Corporation for the current year:
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