CAF-1 · Chapter 7 · Question 7 of 15
What is the accounting treatment for a biological asset if its fair value cannot be measured reliably on initial recognition?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) It is measured at cost less accumulated depreciation and impairment losses.
Explanation
If the presumption that fair value can be measured reliably is rebutted on initial recognition, the biological asset shall be measured at cost less any accumulated depreciation and any accumulated impairment losses.
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