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Determination of Fair Value for Livestock
Ahmad Fitri Bin Ahmad Mazuki
Supervisor: Dr Shayuti Binti Mohd Adnan
Bachelor of Accounting
School of Maritime Business and Management
Agriculture sector contributes to about 8.1% of the Gross Domestic Product of Malaysia in 2016.
While livestock sub-sector produce about 11.6% of total agriculture production. Even though
the production is low, the demand for livestock products such as meat and the dairy products is
high in Malaysia. According to MFRS 141, biological assets are required to be recognized at fair
value less cost to sell. There are problems in determining the fair value of the livestock as the
fair value of living animals such as cow and goats are hard to determine as they are not traded
alive, but traded after being slaughtered and sold as agriculture produce. This study will assess
how the fair value of livestock in Northern Malaysia being determined. Additionally, this study
will investigate the notion of “existence of active market” as proposed by MFRS 141. The data
will be collected through interview session, and questionnaire survey from the government
agency and active traders. The study are expected to provide information on the determination
of fair value of livestock in Malaysia and companies which adapt MFRS could get benefits from
this research as a reference on the fair value determination of livestock. Specifically, the study
will found on the determination of fair value of cattle traded in Northern Malaysia.