1 By student name Professor University Date: 27thMarch, 2019. 1|P a g e
2 Contents Analysis........................................................................................................................................................3 References...................................................................................................................................................4 2|P a g e
3 Analysis The accounting treatment of biological asset comes under IAS 41 that sets out the accounting for biological assets that includes living plants and animal. In this case, the assets are measured at fair value less the overall costs to sell. The cost to sales includes the incremental cost that is directly attributable to the disposal of an asset and does not include financing cost and income taxes. While in the case of PPE IAS 16 sets out the accounting treatment for most of the assets, the principal issues in case of recognition of these assets determination of their overall carrying value and the impairment loss that is related to them. It also is important that proper depreciation is calculated. In thecase of intangible assets IAS 38 Lays down the principles for the recognition and valuation of these assets. It states that intangible assets shall be recognized only if the following criteria are met which includes that there is a probability that future economic benefits shall flow from the assets to the entity and that the overall cost of the asset can be measured reliably.Hence their overall identification and valuation is a bit complex to the organization. In case of these standards it is important that necessary disclosures with respect to the type of asset, the overall valuation method followed, and the accounting treatment should be given in disclosures. So, we that there is a huge difference in the methods that have been followed for the valuation of these different kinds of asset. 3|P a g e
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4 References Abdullah, W., & Said, R. (2017). Religious, Educational Background and Corporate Crime Tolerance by Accounting Professionals.State-of-the-Art Theories and Empirical Evidence, 129-149. Vieira, R., O’Dwyer, B., & Schneider, R. (2017). Aligning Strategy and Performance Management Systems. SAGE Journals, 30(1), 23-48. Webster, T. (2017). Successful Ethical Decision-Making Practices from the Professional Accountants' Perspective.ProQuest Dissertations Publishing, 3(1), 142-156. 4|P a g e