BIOLOGICAL ASSETS ----------->FAIR VALUE IF NOT THERE COST-ACC. DEP-ACC IMPAIRMENT LOSS

Question 1(a) CowLembu Corporation is a beef cattle farm, breeding and maturing cattle for future selling as the main business. The farm is located in Kundasang, Sabah, where the weather is most appropriate for this agriculture business. The company was established in 2015. During that time, 100 immature calves and 50 mature stock were acquired. After a year, the cattle become mature The following give some general information about the fair value for both mature and immature cattle as well as costs to sell: 2018 RM 116 159 2017 RM 110 2016 RM 105 153 2015 RM 100 150 Fair value per unit (immature Fair value per unit (mature Cost to sell: 5.80 0.36 5.50 0.34 - Auctioneer's fee (per unit) 5.25 0.32 5.00 0.30 Transportation costs unit Note: Biological assets are measured on initial recognition and at each reporting date at fair value less cost to sell (FVLCTS). CowLembu has assumed that the cost to sell would include the auctioneer's fee and the transportation costs of the fair value Required (i) Identify the fair value less cost to sell for CowLembu cattle, as at 31 December for (8 marks) (ii) Show the appropriate journal entries due to the acquisitions of the immature cattle from (4 marks) 2015, 2016, 2017 and 2018