What is the treatment of live stock?

They are treated as Capital assets. No depreciation is charged when they are alive, at the death whole of their cost is written off in P & L A/c.

Dear Celina,

Dangerous question

Till date livestock accounting more or less has been at pretty mercy of whimps and fancies of random practioners consultants and accountants. Reasons arn"t galore: Cause is lack of single standard practice or you can say ambigous thought process or non unanimous motions of the aforementioneds.

Still to demystify in nut shell, there are fundamental problems associated with "Livestock" which needs to be addressed with dexterity are:-

1) Say, Milk giving reared animals are current stock or Fixed Assets.

since a) They might be sold directly

           b) They might be held for Milk rearing or Bio products generation

           c) They might be Slaughtered and then disposed off.

           d) The putrid carcasses may further be sold

           e) The potential generation of new borns from the existing

2) Classifying as Balance Sheet item or Income Statment Item

3) What constitues extraordinary income or Losses(eg: New borns, or death due to Culling etc.)

However with the slow but firm introduction and convergence with IFRS this problem hopefully shall be done away with. IAS -41 ,IND AS in India hopefully shall answer the problems prospectively

Hope that helps......A Further link is attached....dear

[PDF] 

International Accounting Standard 41

Cheers.............