15 Questions
What is the focus of IAS 41?
Fair value
Which type of asset does IAS 2 primarily deal with?
Biological assets
What is revalued to fair value less costs to sell at the end of the year under IAS 41?
Biological assets
What method of inventory valuation is not permitted under IAS 2?
LIFO
According to the information provided, which of the following is considered an agricultural produce under IAS 41?
Clothes
Which asset is an example of a biological asset under IAS 41?
Mango tree
What is the treatment for a mango tree under IAS 41?
It is treated as a biological asset until it is harvested.
Which of the following costs are included in the cost of conversion for a product under IAS 2?
Labor costs and overhead costs
What is the correct valuation method for inventory under IAS 2?
Specific identification
According to the information provided, what is the treatment for mangoes under IAS 41 after they are harvested?
They are transferred to inventory and accounted for under IAS 2.
Which of the following is considered an agricultural produce under IAS 41 before it becomes a product?
Cotton
Under IAS 41, how are biological assets measured at the end of the year?
At fair value less costs to sell
What is the treatment for a mango tree under IAS 41?
It is treated as a biological asset until the mangoes are harvested
Which cost is included in the cost of conversion for a product under IAS 2?
Both labor and overhead costs
What is the focus of IAS 41?
Fair value or market value accounting for biological assets and agricultural produce
This quiz focuses on understanding the concepts of fair value and market value in agriculture, particularly in relation to biological assets like plants and animals. The quiz covers examples of agricultural produce, products derived from them, and the revaluation of assets to fair value at the end of the year.
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