Roberts, Staunton and Hagan (1995) suggest that increases in the valuation of livestock can be broken down

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Roberts, Staunton and Hagan (1995) suggest that increases in the valuation of livestock can be broken down into two components:

1. Changes in current market value as a result of biological factors, for example, growth, quality, ageing and changes in composition (volume changes)

2. Changes in market value as a result of price changes.

They suggest that only the ‘volume changes’ should be treated as part of the period’s profit or loss.

What is the basis of their argument and do you think it is valid?

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Financial Accounting

ISBN: 9781743767382

9th Edition

Authors: Craig Deegan

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Question Posted: Sep 03, 2023 07:51 AM

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Roberts, Staunton and Hagan (1995) suggest that increases in the valuation of livestock can be broken down

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1 The basis of their argument is that profits or losses should only take into account real changes i...View the full answer

Financial Accounting

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