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Chapter 8 Activity/Assignment: 1. On January 1, 20x1, The Biological Assets of Entity A Consist of Two 1-Year Old

The document describes biological asset transactions of Entity A over the period of January 1, 20x1 to December 31, 20x1. On July 1, Entity A acquired two 1-year old animals for ₱1,100 each. On October 1, two animals were born with a fair value of ₱500 each. The fair values of the animals on December 31 are provided. The change in fair value due to price changes over the period was ₱800.

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Randelle James Fiesta
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772 views1 page

Chapter 8 Activity/Assignment: 1. On January 1, 20x1, The Biological Assets of Entity A Consist of Two 1-Year Old

The document describes biological asset transactions of Entity A over the period of January 1, 20x1 to December 31, 20x1. On July 1, Entity A acquired two 1-year old animals for ₱1,100 each. On October 1, two animals were born with a fair value of ₱500 each. The fair values of the animals on December 31 are provided. The change in fair value due to price changes over the period was ₱800.

Uploaded by

Randelle James Fiesta
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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CHAPTER 8 ACTIVITY/ASSIGNMENT

1. On January 1, 20x1, the biological assets of Entity A consist of two 1-year old
animals with fair value less costs to sell of ₱1,000 each.
The following transactions occurred during the period:
a. On July 1, 20x1, two 1-year old animals are acquired for ₱1,100 each, equal to the
FVLCS on this date.
b. On October 1, 20x1, two animals are born. The FVLCS of a newborn on this date
is ₱500.
The FVLCS on December 31, 20x1 are as follows:
Age FVLCS
new born ₱600
3 mos. Old ₱800
1 yr. old ₱1,200
1.5 yr. old ₱1,500
2 yrs. Old ₱2,000
How much is change in FVLCS due to price change?

Ans. 800
Solution:
Asset Group Change in FVLCS
From beg. (1 yr.; 1 yr.) (₱1,200 - ₱1,000) x 2 400
Purchased on July 1 (1 yr.; 1 yr.) (₱1,200 - ₱1,100) x 2 200
Born on Oct. 1 (0; 0) (₱600 - ₱500) x 2 200
Change in FVLCS due to Price Change 800

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