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Zoo Livestock Valuation

I have a wildlife park as a client. Government restrictions mean that certain animals (such as the big cats) are not allowed to be sold, they can only be given away.

For accounting purposes, can I enter the value of these animals as nil? - this is the lower of cost and net realisable value!
Darrell Hidson

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By SFoster
26th Sep 2003 08:29

Fixed assets
Lower of cost and net realisable value applies surely to current assets. Are the animals there for breeding & sale purposes (certainly not the big cats), or are they there for the purposes of generating revenue from gate receipts?

I'd have thought the latter and hence should be accounted for as fixed assets. With regard to the big cats, there is of course a value because they generate revenue.

I suppose cost would be written-off over the average expected life of a particular animal, or sooner if it's expected to be given away. If particular animals have a potential sale value, this would be taken into account in determining amortisation. If expected sale value is not less than cost, there need be no amortisation at all.

If animals are acquired free of charge or at nominal cost and they clearly are valuable fixed assets, I suppose there is nothing to stop a revaluation as for any other fixed assets.

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25th Sep 2003 19:52

Zoo livestock valuations
Would this not be valued in a similar way as farm livestock?.

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