How Does Accounting for Bearer Plants Differ from That for Other

question 7

Multiple Choice

How does accounting for bearer plants differ from that for other biological assets?

• A) Companies always revalue bearer plants, as they are required to do for all other biological assets.
• B) Companies never revalue bearer plants, because of their nature.
• C) Companies treat bearer plants as goodwill.
• D) Companies treat bearer plants as PPE. Thus, they choose between the cost and revaluation models for these assets. The treatment of bearer plants constitutes an important exception to the requirement that companies revalue biological assets.

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Definitions:

Commodities

Basic goods used in commerce that are interchangeable with other goods of the same type, often used as inputs in the production of other goods or services.

Prices

The monetary value assigned to goods or services, representing the amount a buyer pays to a seller in a market transaction.

Income

The income earned, usually periodically, from labor or investment returns.

Prices

The sum of money anticipated, needed, or provided as payment for an item.