B. Poultry
Name of Beginning Ending
Inventory
Offspring Dispersal Sold Mortality
Inventory
Value
Commodity
Native Chicken 4,148 1,117 286 26 1,108 3,660 ₱ 657,895.00
Pekin Duck 139 0 52 0 0 87 26,100.00
Sub-total ₱ 683,995.00
Total ₱1,543,115.00
4.16 Based on the reported value provided by the Provincial Veterinarian, a
significant discrepancy of ₱17,558,721.37 exists between the reported value and
the recorded book value. However, this valuation does not reflect the fair value
less cost to sell as required under the cited IPSAS but based on estimated prices
or costs, consensus, and other price references.
4.17 To determine the fair value in compliance with paragraphs 19 to 22 of IPSAS
27, biological assets may be grouped into significant market attributes, such as
age, quality, or other relevant factors that serve as a basis for pricing. This
process should include the identification of relevant active markets and quoted
prices, as well as other reference prices in cases where active markets do not
exist. Subsequently, the cost to sell, such as transportation expenses and other
costs necessary to bring the livestock to the market or the location for
distribution, should be deducted.
4.18 The validity and accuracy of the breeding stock account could not be determined
due to the non-conduct of the inventory count and the non-submission of the
required inventory report. These deficiencies have rendered the existence and
completeness of the account doubtful.
Non-recognition and measurement of stocks in accordance with IPSAS 27.
4.19 Paragraph 16 of IPSAS 27 provides that a biological asset shall be measured
on initial recognition and at each reporting date at its fair value less costs to
sell, except in cases described in paragraph 34, where the fair value cannot be
measured reliably.
4.20 Paragraph 34 states that there is a presumption that the fair value of a biological
asset can be measured reliably. This presumption may only be rebutted at initial
recognition if market-determined prices or values are unavailable and
alternative estimates of fair value are deemed clearly unreliable. In such
instances, the biological asset should be measured at its cost, less accumulated
depreciation and accumulated impairment losses. Once the fair value becomes
reliably measurable, the entity shall measure it at its fair value less costs to sell.
4.21 In line with the IPSAS, Section 4.5 of COA Circular No. 2016-004 requires the
Local Agriculturist to provide the Local Accountant information on the
prevailing market price for each biological asset and the prevailing cost to sell
as of the reporting date.
4.22 However, since the conversion and adoption of the chart of accounts in CY
2015, breeding stock accounts have been measured at cost. This practice
persists due to the lack of important information necessary for compliance with
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