05-25-2009, 07:04 AM
The question of depreciation of live stock can only arise if there is an inability to measure Fair Value reliably.
IAS 41.31 "There is a presumption that fair value can be measured reliably for a biological asset. However, that presumption can be rebutted only on initial recognition for a biological asset for which market-determined prices or values are not available and for which alternative estimates of fair value are determined to be clearly unreliable. <b>In such a case, that biological asset should be measured at its <i><u>cost less any accumulated depreciation</u></i> and any accumulated impairment losses</b>. Once the fair value of such a biological asset becomes reliably measurable, an enterprise should measure it at its fair value less estimated point-of-sale costs."
IAS 41.31 "There is a presumption that fair value can be measured reliably for a biological asset. However, that presumption can be rebutted only on initial recognition for a biological asset for which market-determined prices or values are not available and for which alternative estimates of fair value are determined to be clearly unreliable. <b>In such a case, that biological asset should be measured at its <i><u>cost less any accumulated depreciation</u></i> and any accumulated impairment losses</b>. Once the fair value of such a biological asset becomes reliably measurable, an enterprise should measure it at its fair value less estimated point-of-sale costs."
