05-25-2009, 07:44 AM
I believe that in such a rare situation, when the fair value of the biological asset cannot be measured reliably, the depreciation should be charged according to the useful life of the asset.
You might find Page 450-451 of the book "Auditing Principles and Practice" by Ravinder Kumar and Virender Sharma, quite interesting, where they have mentioned the depreciation method developed by the National Dairy Research Institute of India. You can view the book on the following link
http//books.google.com.pk/books?id=3I2yT25BtWEC&dq=Auditing+Principles+and+Practice&printsec=frontcover&source=bl&ots=AdYEJ7JcGQ&sig=_jQFLT1bvvSsFpf7KJvfJx0Gpr4&hl=en&ei=jr8ZSuHvGpOTkAWVpJ2ADQ&sa=X&oi=book_result&ct=result&resnum=3#PPA450,M1
You might find Page 450-451 of the book "Auditing Principles and Practice" by Ravinder Kumar and Virender Sharma, quite interesting, where they have mentioned the depreciation method developed by the National Dairy Research Institute of India. You can view the book on the following link
http//books.google.com.pk/books?id=3I2yT25BtWEC&dq=Auditing+Principles+and+Practice&printsec=frontcover&source=bl&ots=AdYEJ7JcGQ&sig=_jQFLT1bvvSsFpf7KJvfJx0Gpr4&hl=en&ei=jr8ZSuHvGpOTkAWVpJ2ADQ&sa=X&oi=book_result&ct=result&resnum=3#PPA450,M1
