19. The determination of fair value for a biological asset or agricultural
produce may be facilitated by grouping biological assets or agricultural
produce according to significant attributes; for example, by age or quality.
An entity selects the attributes corresponding to the attributes used in the
markets as a basis for pricing.”
5.2. Further, paragraph 34 of the same Standard states that, “There is a presumption that
fair value can be measured reliably for a biological asset. However, that presumption
can be rebutted only on initial recognition for a biological asset for which market-
determined prices or values are not available, and for which alternative estimates of
fair value are determined to be unreliable. In such a case, that biological asset shall
be measured at its cost less any accumulated depreciation and any accumulated
impairment losses. Once the fair value of such a biological asset becomes reliably
measurable, an entity shall measure it at its fair value less costs to sell. xxx”
5.3. Anent thereto, COA Circular No. 2016-004 dated September 30, 2016, provides
guidelines for the preparation of financial statements, consistent with the adoption of
IPSAS in LGUs.
5.4. Section 4.5 thereof states that the Local Agriculturist shall provide the Local
Accountant with the following reports so that the biological asset accounts in the
financial statements are fairly presented in accordance with the IPSAS:
“4.5.1 Provide the inventory of breeding stocks and other biological assets,
and the prevailing market price for each item as of reporting date;
and
4.5.2 Provide information on the prevailing cost to sell of the biological
assets.”
5.5. Our examination of the financial statements showed that the biological assets account
balance of ₱1,715,503.00 remained unchanged for more than five years ending
December 31, 2024, composed of the following:
Biological Asset Quantity Amount
Breeding Stocks – 10801010
Cattle 10 heads ₱ 299,000.00
Piglets 80 heads 199,600.00
Caprine – Goats
Does 36 heads 428,400.00
Buck 2 heads 39,800.00
*Carabao 23 heads 332,500.00
*Heifers (Cattle Dispersal) 15 heads 15,000.00
*Piglets (Swine Dispersal) 12 heads 2,203.00
Unspecified livestock (CY 2018 and prior) 399,00.00
Total ₱ 1,715,503.00
Table 1. Biological Assets
*Identified per PPE Schedule as of December 31, 2024
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