A Comparative study of the challenges using fair value and historical cost in the valuation of the biological assets
| dc.contributor.author | Bagenda, Olame Patient | |
| dc.date.accessioned | 2023-02-06T14:29:00Z | |
| dc.date.available | 2023-02-06T14:29:00Z | |
| dc.date.issued | 2022 | |
| dc.description | A Research Project Submitted in partial fulfillment of the requirements for the Degree of Bachelor of Commerce at Strathmore University | en_US |
| dc.description.abstract | This research project presents a comparative study of the challenges that arise from the use of two valuation methods for biological assets, fair value and historical cost method of valuation, in the agricultural sector in Kenya. By conducting an experiment with some accountants operating in the agricultural sector, the researcher uncovers which one between the two valuation model, fair value and historical cost, presents more difficulties in implementing. The experiment consisted of two accounting exercises on Fair value and Historical cost valuation model. The exercises involved completing a few simple accounting figures and calculations. It contained data related to the accounting facts of a cow farm expenses such as sales, physical data on growth and procreation, etc. It contained elementary accounting records and incomplete financial statements. Participants were asked to indicate the values of biological assets and calculate farm income. Hereafter, self-complete questionnaires were delivered to the sample group to supplement the data received from the two accounting questions. Considering the complexities of cost calculation when it comes to the valuation of the biological assets and the predominance of small family business, the study concludes that the valuation and reporting of the biological assets can be more easily understood and done under the Fair value model than Historical Cost model. The historical cost model conveys more difficulties in cost calculation and a less accurate grasp in the real situation of the farm. However, more research is needed with a wider sample range and also with other types of biological assets. | en_US |
| dc.identifier.uri | http://hdl.handle.net/11071/13101 | |
| dc.language.iso | en | en_US |
| dc.publisher | Strathmore University | en_US |
| dc.title | A Comparative study of the challenges using fair value and historical cost in the valuation of the biological assets | en_US |
| dc.type | Undergraduate Project | en_US |
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