Consider a large dairy farming company that report under IFRS. Beyond manufacturing, farm property, and equipment, the farm's main assets are the dairy cows and the milk that they produce. Describe how these assets may be presented on the financial statements. Additionally, discuss the accounting treatments of the following events:
(a) A new dairy cow is bought by the farm
(b) A cow owned by the farm loses its ability to produce milk
How would this differ if the farm reported under ASPE? Comment on which standard you believe provides better presentation of the assets and why.

  • CreatedSeptember 18, 2015
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