The Release of AASB 1037 Self-Generating and Regenerating Assets a Predecessor

question 67

Essay

The release of AASB 1037 Self-generating and Regenerating Assets a predecessor of AASB 141 Agriculture was controversial.Discuss the criticisms in the accounting treatment for biological assets that continue to trouble AASB 141.

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Definitions:

Dividends

Money paid out to shareholders by a business, generally coming from the business's profits.

Common Stock

A type of security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Retained Earnings

The portion of net income that is not distributed to shareholders but is kept by the company for reinvestment or debt payment.

End-Of-Period Spreadsheet

A tool used in accounting to compile all balances and adjustments at the end of an accounting period before the preparation of financial statements.