With reference to the standard, explain why deep-water fishing is not accounted for under NZ IAS 41 but the aquaculture of salmon is

Accounting Aug 05, 2020

With reference to the standard, explain why deep-water fishing is not accounted for under NZ IAS 41 but the aquaculture of salmon is.

Expert Solution

As per NZ IAS 41, ‘Agriculture’ Agricultural activity covers a diverse range of activities; for example, raising livestock, forestry, annual or perennial cropping, cultivating orchards and plantations, floriculture, and aquaculture (including fish farming).

Deep-water fishing is not accounted for under NZ IAS 41 because its not called actively engaging in the fishing farming, the fish grew naturally in the ocean and we can say ocean fishing is from the unmanaged source.Whereas under aquaculture, the management facilitates biological transformation. Hence , aquaculture of salmon is accounted under NZ IAS 41.

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