19 Questions
What is the measurement basis for biological assets at initial recognition and subsequent reporting dates?
Fair value less estimated costs to sell
When are the gains on initial recognition of biological assets at fair value less costs to sell recognized?
Included in profit or loss
How are costs related to biological assets measured at fair value recognized?
Recognized as expenses when incurred
What happens if fair value cannot be reliably measured for a biological asset?
The asset is measured at cost less accumulated depreciation and impairment losses
How is agricultural produce measured at the point of harvest?
At fair value less estimated costs to sell at the point of harvest
What is the objective of IAS 41 Agriculture?
To establish standards of accounting for agricultural activity
Which of the following is excluded from the scope of IAS 41 Agriculture?
Land related to agricultural activity
What is the definition of a biological asset according to IAS 41 Agriculture?
A living plant or animal
What is a bearer plant according to IAS 41 Agriculture?
A living plant used in agricultural production expected to bear produce for more than one period
What is the purpose of IAS 41 Agriculture?
To manage the biological transformation of biological assets into agricultural produce
Which of the following is NOT within the scope of IAS 41 Agriculture?
Intangible assets related to agricultural activity
What is a biological asset according to IAS 41 Agriculture?
A living animal or plant
When do the amendments to IAS 41 Agriculture exclude bearer plants from its scope?
Annual periods beginning on or after 1 January 2016
What is a bearer plant according to IAS 41 Agriculture?
A plant expected to bear produce for more than one period and has a remote likelihood of being sold as agricultural produce
What is the measurement basis for agricultural produce at the point of harvest?
Fair value less estimated costs to sell
When are the gains on initial recognition of agricultural produce at fair value less costs to sell recognized?
At the point of harvest
How are costs related to biological assets measured at fair value recognized?
Recognized as expenses when incurred
What happens if fair value cannot be reliably measured for a biological asset?
The asset is measured at cost less accumulated depreciation and impairment losses
What is accounted for under IAS 16 Property, Plant and Equipment?
Agricultural land
Study Notes
Measurement of Biological Assets
- Biological assets are measured at initial recognition and subsequent reporting dates at fair value less costs to sell.
- Gains on initial recognition of biological assets at fair value less costs to sell are recognized immediately in profit or loss.
Measurement of Costs
- Costs related to biological assets measured at fair value are recognized as an expense when incurred.
Fair Value Measurement
- If fair value cannot be reliably measured for a biological asset, the asset is measured at cost less accumulated depreciation and impairment losses.
Agricultural Produce
- Agricultural produce is measured at the point of harvest at fair value less costs to sell.
Objective of IAS 41
- The objective of IAS 41 Agriculture is to prescribe the accounting treatment and disclosure of agricultural activity.
Scope of IAS 41
- IAS 16 Property, Plant and Equipment is excluded from the scope of IAS 41 Agriculture.
Definitions
- A biological asset is a living animal or plant, including livestock, forestry, and crops.
- A bearer plant is a plant that is used solely for the cultivation of produce, such as trees in an orchard or vineyard.
Purpose of IAS 41
- The purpose of IAS 41 Agriculture is to provide a framework for the accounting and disclosure of agricultural activities.
Amendments to IAS 41
- Amendments to IAS 41 Agriculture exclude bearer plants from its scope, and these plants are accounted for under IAS 16 Property, Plant and Equipment.
Measurement of Agricultural Produce
- Agricultural produce is measured at the point of harvest at fair value less costs to sell.
Recognition of Gains
- Gains on initial recognition of agricultural produce at fair value less costs to sell are recognized immediately in profit or loss.
Test your knowledge of the accounting standards and scope of IAS 41 Agriculture, which covers biological assets and agricultural produce. Learn about the management of biological transformation and government grants related to biological assets.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
