BIOLOGICAL ASSET The followings are independent scenarios in regards to biological assets: Scenario I Bangau Sdn. Bhd. operates a mini zoo which consist of small animals. One of the popular species the company owned is the albino pygmy hedgehogs. The company bought three couples of hedgehogs for RM1,500.00 each. All other direct costs to import the animals were RM600.00. Medical costs of RM350.00 were expensed. The lifespan of the hedgehogs were estimated to be 5 years. The company uses the cost model for subsequent measurement. Scenario 2 Semanis Sdn. Bhd. bought a 100 hectares of sugar cane plantation in Perlis for RMRM2,500,000. In general, it is estimated that 70 ton of sugar cane can be harvested per hectare. At the time of acquisition, sugar cane is expected to yield RM400.00 per ton metric. At the end of accounting period, the price has risen to RM415.00 per ton metric. Scenario 2 Hi-Best Tea Sdn. Bhd. owns an Assam breed tea plantation since 1980. It has 1000 plants which cost around RM450,000.00 to cultivate. It is estimated per plant, 1 kilogram of tea leaves may be harvested per harvest with the price of leaves of RM10.00 per kilogram. The plant may be harvested 4 times a year. The tea plants are expected to have 40 years of economic life with regular plucking. REQUIRED: For each scenario: a Determine the scope of standards (MFRS) that can be applied to each underlined assets. b. Prepare journal entries to demonstrate: [4 marks] i. Initial recognition ii. Subsequent measurement [3 marks] [8 marks]