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What is the Accounting Treatment for the Eggs in the Farm


What is the Accounting Treatment for the Eggs in the Farm as per IFRS ?

asked Apr 22, 2013 in IAS 41 - Agriculture by anonymous
retagged Apr 23, 2013 by Visio

1 Answer

0 votes
Operation of a chicken farm will involve biological assets and shall be treated as per IAS 41 - Agriculture. As per IAs 41 definitions, biological assets mean living animals and plants [IAS 41.5] and agricultural produce means the harvested product from biological assets [IAS 41.5]. Therefore the eggs are agricultural produce and should be treated accordingly.

Agricultural produce should be measured at fair value less estimated costs to sell at the point of harvest [IAS 41.13]. Since eggs generally have a an active market your fair value would be the current market price and costs to sell, if any.

 Note that IAS 2 - Inventories specifically excludes biological assets and produce from its scope.
answered Apr 22, 2013 by anonymous
Please can you give me the double entry for "at the point of harvest " & tell will it be unrecognized when it is sold?


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