Fair Value vs Market Value in Agriculture Quiz
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Questions and Answers

What is the focus of IAS 41?

  • Labor costs
  • Market value
  • Historical cost
  • Fair value (correct)

    • Which type of asset does IAS 2 primarily deal with?

  • Tangible fixed assets
  • Financial assets
  • Biological assets (correct)
  • Intangible assets

    • What is revalued to fair value less costs to sell at the end of the year under IAS 41?

  • Intangible assets
  • Financial liabilities
  • Biological assets (correct)
  • Product inventory

    • What method of inventory valuation is not permitted under IAS 2?

    <p>LIFO</p> Signup and view all the answers

    According to the information provided, which of the following is considered an agricultural produce under IAS 41?

    <p>Clothes</p> Signup and view all the answers

    Which asset is an example of a biological asset under IAS 41?

    <p>Mango tree</p> Signup and view all the answers

    What is the treatment for a mango tree under IAS 41?

    <p>It is treated as a biological asset until it is harvested.</p> Signup and view all the answers

    Which of the following costs are included in the cost of conversion for a product under IAS 2?

    <p>Labor costs and overhead costs</p> Signup and view all the answers

    What is the correct valuation method for inventory under IAS 2?

    <p>Specific identification</p> Signup and view all the answers

    According to the information provided, what is the treatment for mangoes under IAS 41 after they are harvested?

    <p>They are transferred to inventory and accounted for under IAS 2.</p> Signup and view all the answers

    Which of the following is considered an agricultural produce under IAS 41 before it becomes a product?

    <p>Cotton</p> Signup and view all the answers

    Under IAS 41, how are biological assets measured at the end of the year?

    <p>At fair value less costs to sell</p> Signup and view all the answers

    What is the treatment for a mango tree under IAS 41?

    <p>It is treated as a biological asset until the mangoes are harvested</p> Signup and view all the answers

    Which cost is included in the cost of conversion for a product under IAS 2?

    <p>Both labor and overhead costs</p> Signup and view all the answers

    What is the focus of IAS 41?

    <p>Fair value or market value accounting for biological assets and agricultural produce</p> Signup and view all the answers

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