Professional Documents
Culture Documents
Problem 1
Alaminos Farm Corporation reported the following lists of biological assets and agricultural products for
the year ended December 31, 2014:
1) What amount of biological asset should Alaminos Farm Company report in its December 31, 2014
statement of financial position?
2) What amount should Alaminos Farm Company report as inventory related to the above biological
assets?
Problem 2
On December 31, 2014, Suki Company reported the following information involving biological assets:
1) What amount should the biological asset be reported in the December 31, 2014 balance sheet?
2) What amount of net gain should Suki Company report in its December 31, 2014 income statement
related to the biological asset?
Problem 3
Rising Sun Company has the following information pertaining to its biological assets for the year 2014:
A herd of 100, 2-year old animals was held at January 1, 2014. Ten animals aged 2.5 years were
purchased on July 1, 2014 for P5,400, and ten animals were born on July 1, 2014. No animals were sold
or disposed of during the period.
1|Page
L-NU AA-23-02-01-18
Per unit fair values less estimated point of sale costs were as follows:
1) How much of the increase in the fair value of the biological assets due to price change?
2) How much of the increase in the fair value of the biological assets due to physical change?
3) What is the fair value of the biological assets as of December 31, 2014?
2|Page