Hello,
I have questions regarding a standard that's somewhat challenging:
- If any entity (not government) gifts a fish farm some fish, what will be the accounting treatment in the first year when the fish is received and in the second year when it is sold. Will we record inventory and revenue the year we receive it?
- If this fish reproduces, what will the accounting entry be?
Many thanks!
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IAS41
8y ago#1Hi,
It might be challenging but I doubt you would get these complexities in the exam. The key to both of your questions is fair value, and we would measure the fish at fair value.
Thanks
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