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BIOLOGICAL ASSETS
9-1
(ABC Farms)
(a)
Carrying value of Biological Assets, 12/31/11
Cost of biological assets purchased during 2012
Fair valuation loss on initial recognition
Change in fair value due to biological transformation and
price fluctuations
Decrease in fair value due to harvest
Biological Assets, 12/31/12
(b)
9-2
(Ranchero Corporation)
(a)
Balance of Biological Assets at December 31, 2011
3 years old = 2,000 x P44,000
P88,000,000
2 years old = 1,500 x P35,000
52,500,000
Increase in fair value
2,000 x (P55,000 P44,000)
P22,000,000
1,500 x (P47,000 P35,000)
18,000,000
Balance, December 31, 2012 (at FV less Cost to sell)
(b)
(c)
P2,800,000
3,200,000
( 150,000)
2,000,000
(1,000,000)
P6,850,000
P 150,000
P2,000,000
P140,500,000
40,000,000
P180,500,000
P6,000,000
3,750,000
P9,750,000
P16,000,000
14,250,000
30,250,000
P110,000,000
70,500,000
P180,500,000
(d)
Entry at yearend
Biological Assets
40,000,000
Gain Increase in FV less CTS due to Price Change
9,750,000
Gain Increase in FV less CTS due to Physical Change
30,250,000
(a)
Price Change
2 year-old animals on Jan. 1
10 x (P10,500 P10,000)
2.5 year-old animal on July 1 1 x (P11,100 P10,800)
Animal born on July 1
1 x (P7,200 P7,000)
Change in FV less POS Cost due to Price Change
9-3
P5,000
300
200
P5,500
P15,000
900
7,000
800
P23,700
10,800
10,800
7,000
7,000
(d)
MC1
MC2
MC3
MC4
MC5
MC6
MC7
MC15
MC16
MC17
MC18
MC19
MC20
MC21
MC22
5,500
16,700
24,000
24,000
P100,000
10,800
5,500
23,700
(24,000)
P116,000
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