The General Rules for Agricultural Produce Using US GAAP and IFRS

g) Biological assets related to agricultural activity that are measured at fair value less costs of disposal

B. Calculate the relevant cost of the project for Flower. What is the lowest amount the firm should accept for the contact? Explain.

The mean, median, and range value estimates for COSTVALU and MKTVALU are higher than ASSESVAL. The statistics for last year’s value estimate (ASSESVAL) are lower than this year’s values estimates (COSTVALU and MKTVALU). The difference may be from an increase in market values over the past year. The direct comparison approach produces the most uniform estimate.

The five research articles I have chosen to further my research on the convergence between U.S. GAAP and IFRS are The Implication of US GAAP and IFRS Convergence on American Business by Austin Willmore (2015), IFRS adoption by country by PWC (2015), International Financial Reporting Standards and American Generally Accepted Accounting Principles: the Convergence Lessons by Kuzina (2015), The economic impact of IFRS - a financial analysis perspective by Seay (2014), and Accounting for Leases The New Standard by CPA Journal (2016). These articles are related to my topic, where these researchers researched and analyzed the financial statement reporting on convergence of the U.S. Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS), and certain accounts when adopting IFRS present a different result in the financial reporting for U.S. reporting companies when U.S. GAAP standards combined with IFRS. Also, these research articles discuss the existence of two systems of standards, U.S. GAAP and IFRS; and the issue and difficulty of the process to fully converge.

According to the information provided, the most appropriate cow size for the herd using the 50% weaning rule would be 1,100 pounds. Although any cow size would ultimately result in a loss for the farm at this point, the cows at 1,100 pounds have a smaller financial burden than heavier cows. The 50% “rule” is not very specific, as the case only specifies [calf weight] “...close to 50% of [the mother’s] mature weight”, so it can be assumed that the 55.5% (585 pounds) is sufficient, which yields a marginal revenue of $28.08. To a much lesser extent, around 1,200 pounds could also be less burdensome for the farm than 1,300 or 1,400 pounds, but 1,200 is on the brink of barely breaking even at a marginal revenue of $6.48. Once the weight exceeds the 1,200 increment, the marginal revenue dips

Corn is a cheap commodity to purchase compared to the farmer’s cost to produce. The industrial farmer relies on the large volume and low purchase price of corn to help shorten a cow’s lifespan and provide food more rapidly to the American population. Grass fed cows take longer to reach their ideal weight for

The United States harvests over 80 million acres of corn each year, or $63.9 billion worth. This is a surprising amount of corn. Even more surprising is that almost 40% of this corn is used to feed US cattle.1 But cows eat grass, don’t they? Not in the United States, where factory farms, also known as confinement farms, are status quo. The average heifer on a confinement farm weighs 1500 pounds2 - around twice as much as its New Zealand counterpart, lives half as long3 and is fed primarily on expensive (relative to grass) grain and corn. The US dairy industry is economically inefficient and environmentally unsustainable: There are too many farms in the West, where conditions are generally drier, and too few in the East, where demand for

IFRS 13 determines the extent to which subjectivity can be applied in the measurement of assets using fair value. The standard states the guidelines that should be followed in determining the value of the long-term assets in an active market (Gary John Previts, 2011).

Most rely on valuation heuristics involving P/E, PEG, and price-to-sales . The simplicity of using heuristic triggers dependence on valuation heuristics as an alternative for the fundamental valuation. P/E, PEG, and price-to-sales need few variables and use simple formulas. Therefore , the estimates are rather perceptive THUS subject to bias. The cause of these biases arise from weak assumption made towards P/E, PEG, and price-to-sales inputs.

Differences Between GAAP and IFRS and Implications of Potential Convergence - Boundless Open Textbook. (n.d.). Retrieved February 5, 2015, from https://www.boundless.com/accounting/textbooks/boundless-accounting-textbook/introduction-to-accounting-1/conventions-and-standards-21/differences-between-gaap-and-ifrs-and-implications-of-potential-convergence-131-7049/

Hence these components were added to the model to analyze the scenarios where growing camelina and carinata profits were compared with insurable traditional crops. This model includes yield protection (YP) and revenue protection (RP) insurance program for crops which are already insured in South Dakota; includes corn, soybean, wheat, sunflower, sorghum etc. Camelina is currently insurable in some parts of Montana and North Dakota. Though written coverage is not available for Camelina; we used NAP coverage as feasible measure. While Carinata can be covered under the canola policy as rapeseed type. Crop insurance premiums are calculated based on producer premiums paid at 65% coverage level. The 65% coverage level was chosen based on highest actual production history (APH) insurance policy sold for each crops per

of the plant is determined to be $112 000, with a remaining useful life of two years.

1 The system of the market is not perfect enough. For the lack of effective management of listed companies, the false accounting information disclosure, application of fair value is facing high risk. The government's intervention on the market also is relatively common, causing the price of resources often deviate from the market. Market information can't fully reflect the real

ACC307 INDIVIDUAL ASSIGNMENT TASK 1: Contemporary Issues of Accounting Theory Fair Value Measurement Overview After the International Accounting Standards Board (IASB) released the IFRS 13 Fair Value Measurement in May 2011 for the purpose of completing its joint project with the US Financial Accounting Standards Board (FASB) on fair value, the Australian Accounting Standard Board (AASB) released the Australian equivalent - AASB 13 Fair Value Measurement in the September of the same year. This standard permitted early adoption but generally started to take effect for the financial reporting periods beginning from 1 January 2013. This new standard requires no new requirement for the adoption and but it was accompanied with the issuing of AASB 2011-8 Amendments to Australian Accounting Standards arising from the AASB 13 which has made consequential changes to 32 standards and 9 interpretations for the adoption in Australia. The new standard attempts to unify IFRS and US GAAP by specifying how entities should apply the fair value measurements that applied in previous IFRS standards. It clarifies and redefines fair value as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date”, sometimes referred to as an “exit price”. It also sets out a single source guidance for a robust measurement framework to ensure that the requirements are applied consistently and have clear

Likewise, fair value entails the replacement and also the cost of substitutes. For instance, the fair value of an asset is expressed as the given amount at which a specified asset is bought and sold in the current transaction involving willing parties, other than in the process of liquidation. On the other side, when dealing with a company’s balance sheet, the fair value of liability is the state at which the liability is likely to be incurred or settled in the agreed transaction between various willing parties. In this case, if the fair value is available, the quoted market price in the given active market remains the best evidence of the fair value, and it is usually expressed as the basis for the measurement. In any active market, fair value is more liquid with small bids which makes the difference between the sell and the product purchase prices. Fair value is different from the carrying value in that; the carrying value is expressed as the current asset or liability value commonly based on the company’s balance sheet, while the fair value of an asset or liability is mostly expressed as the market-to-market value different from the carrying value which accounts to the figures of the particular asset on the company’s balance sheet. Estimates of company’s fair value are made using either the quoted market price or using the best information available in a given circumstance (Barlev & Haddad, 2013).). If the two factors are not available,