Australian Agricultural Company Limited was formed with a grant of one million acres and the stated aim of cultivating and improving the wastelands of the colony of New South Wales. Today the company is a cattle producer with a significant position in the Australian food industry and is the largest beef cattle producer in Australia. The company’s most significant asset is its cattle. On the balance sheet as at 31 March 2015, the cattle are recorded as biological assets. The trading cattle, classified as current assets, are valued at $200077000. The commercial and breeding stud cattle, classified as non-current assets, are valued at $265109000.

Required
a. Identify the basis for measuring biological assets.
b. List the market indicators that inform the values of Australian Agricultural Company Limited’s cattle.
c. Describe how Australian Agricultural Company Limited determines the net market value of biological assets. Discuss the information required to determine the measurement. Suggest how revaluation increases and decreases, related to the cattle, are accounted for.