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Re: Replacements

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January 31, 2013 11:23AM

A breeding stock animal, such as a cow, is a depreciable asset. This is evidenced when purchased within accounting by showing up in the long term asset list of ones balance sheet.

So if for example, I have 10 cows worth $10,000 in my group 'Cow Herd'. These appear on my balance sheet. Now these 10 cows all give birth. Now I have 20 animals in my 'Cow Herd' group, still worth the original $10,000.

5 of these calves are bull calves which we change to steers, which we wean. We can move these 5 to a new group called steers, now we have 15 animals in the Cow Herd group worth the original $10,000. Now we sell these 5 steers.
Where are these revenues attributed to?
Are they not attributed back to the Cow Herd and to each individual cow in order to maintain or create the enterprise statement for this Cow Herd? Not individually I fear, only as a group.
These 5 steers had no value until they were actually sold.
I haven't gotten this far in my testing yet, will let you know what I find though.

The remaining 5 calves are heifers that we plan on keeping for replacement purposes. We wean them, move them to a heifer group. Now we are back to the original 10 cows worth $10,000 in the Cow Herd, with 5 heifers in a heifer group with no value. Now if we breed these heifers and move them back into the Cow Herd group, we are back to 15 animals in the Cow Herd group still worth the original $10,000.
So in order to get any value attached to these heifers, and to increase the value of the Cow Herd group on our balance sheet, the only way I see around it is to sell these bred heifers, which should add to the income stream of the Cow Herd enterprise, then buy them back for same value so as to increase the numbers and values in the Cow Herd group. Now I would have 15 animals worth $15,000 in my Cow Herd group.

Thanks for following along,



Mitch KonenJanuary 28, 2013 08:58PM

Re: Replacements

Kathy ClineJanuary 30, 2013 09:14AM

Re: Replacements

Mitch KonenJanuary 30, 2013 11:06AM

Re: Replacements

Kathy ClineJanuary 30, 2013 02:07PM

Re: Replacements

Mitch KonenJanuary 31, 2013 11:23AM

Re: Replacements

Kathy ClineJanuary 31, 2013 12:55PM

Re: Replacements

Mitch KonenFebruary 01, 2013 04:31PM

Re: Replacements

Don GarrettJanuary 31, 2013 08:04PM

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