ias 41

How do you count sheep (and stay awake!)? Has the company applied the principles of IAS 41 appropriately? What problems might you face when attempting to confirm the appropriateness of an inventory count at a fish farm (for those of you in Grand Cayman, think about the turtle farm in West Bay)

How do you determine ownership of sheep? And age? And condition?

How do you value the coats of the sheep when they have been shorn and the fleeces are waiting to be sold to a woolen merchant?

Let your imagination go – let it fly with the wind! Apply your knowledge about agricultural matters gained over the years gone by in your life.

And then apply that knowledge in the exam room

Surely we need to be considering how to confirm the assertions with reference to sheep in exactly the same way that we need to confirm the assertions about a piece of plant and machinery. The only difference is that sheep move whereas an item of plant doesn’t.

Ok?

Dear Sir,

From the Audit point of view, it is risky area. For Example, if lamb is to keep in order to reproduction, it should be treated as bearer assets. If intention is to sale , then treat as Inventory.
Value of bearer assets will be changed due to biological change or change in the market price. it should be clearly disclosed.

I think, it is complex, subjectivity and thus risky. Am i right?