Agricultural Activities

Question 1

Art, science, and practice of farming (including cultivation of soil and rearing of animals) to provide food, wool, and other products

Answer 1

Agriculture

Question 2

Management by entity of biological transformation and harvest of biological assets for sale or for conversion into agricultural produce or into additional biological assets

Answer 2

Agricultural activity

Question 3

Comprises the processes of growth, degeneration, production, and procreation that causes qualitative or quantitative changes in a living plant or animal

Answer 3

Biological transformation

Question 4

It is a living animal or plant

Answer 4

Biological asset

Question 5

Biological assets that are to be harvested as agricultural produce or sold as biological assets

Answer 5

Consumable biological assets

Question 6

Biological assets that are held to bear produce, and only the produce is harvested while the said asset remains.

Answer 6

Bearer biological assets

Question 7

Consumable plants are classified as

Answer 7

Biological assets

Question 8

Bearer plants are classified as

Answer 8

PPE

Question 9

Animals for agricultural purposes (bearer or consumable) are classified as

Answer 9

Biological assets

Question 10

Dogs, cats, goldfish, horses, and other animals that are treated as pets or for recreational purposes are classified as

Answer 10

PPE

They are not meant for human consumption.

Question 11

Shrubs and trees for ornamental or decorative purposes are classified as

Answer 11

PPE

Question 12

Harvested produce of a biological asset

Answer 12

Agricultural produce

Question 13

Detachment of produce from a biological asset or cessation of a biological asset’s life process

Answer 13

Harvest

Question 14

Examples of agricultural produce

Answer 14

1. Grapes coming from a grape vineyard
2. Apples from an apple tree
3. Mango from a mango tree

Question 15

Land used in agricultural activities is classified as

Answer 15

PPE

Question 16

What is the agricultural produce of a beef cattle?

Answer 16

Carcass/meat

Question 17

What is the agricultural produce of a sheep?

Answer 17

Wool

Question 18

What is the agricultural produce of a rubber tree?

Answer 18

Harvested latex

Question 19

Using the wool coming from a sheep, one product that can be produced is a wool jacket. In this case, the wool jacket is treated as

Answer 19

Inventories

Question 20

Products that are the results of processing after harvest are treated as

Answer 20

Inventories

Question 21

Agricultural produce at point of harvest is under what standard?

Answer 21

Agriculture (PAS 41)

Question 22

Biological assets is under what standard?

Answer 22

Agriculture (PAS 41)

Question 23

Bearer plants are under what standard?

Answer 23

PPE (PAS 16)

Question 24

Initial measurement of biological asset

Answer 24

FV - Costs to sell

Question 25

Subsequent measurement of biological asset

Answer 25

FV - Costs to sell

Question 26

If FV cannot be measured reliably, the biological asset shall be measured at

Answer 26

Cost model

Cost - Accum. depreciation - Accum. impairment losses (if any)

When the FV becomes reliably measurable, use FV - Costs to sell as measurement basis

Question 27

Costs to sell are the following:

Answer 27

1. Broker’s commission
2. Levies by regulatory agencies and commodity exchanges
3. Transfer taxes and duties

Question 28

Gain or loss from initial recognition of a biological asset at FV-CTS & change in FV-CTS shall be included in

Answer 28

P/L for period in which it arises

Question 29

Costs incurred in biological assets measured at FV-CTS are recognized in

Answer 29

P/L

Question 30

Changes in FV-CTS are recognized in

Answer 30

P/L

Question 31

Components of changes in FV-CTS

Answer 31

1. Price change
2. Physical change

Question 32

Separate disclosure of components of changes in FV-CTS (price change & physical change) is:

Answer 32

Encouraged (but not required)

Question 33

Agricultural produce harvested from biological assets shall be measured at _______________ at the point of _____________.

Answer 33

FV-CTS; harvest