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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.
1505 | UMT UNDERGRADUATE RESEARCH DAY 2018