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FINANCIAL ACOCUNTING AND REPORTING > BIOLOGICAL ASSETS - IAS 41 > Flashcards

BIOLOGICAL ASSETS - IAS 41 Flashcards

1
Q

the transformation of biological assets into agricultural produce

the management of agricultural activity

A

agricultural activity

agriculture

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2
Q

biological asset

A

living plants and living animals

  • related to agriculture
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3
Q

agricultural produce

A

harvested products of the biological assets

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4
Q

Scope of IAS 41

A

all biological assets

agri produce at POINT OF HARVEST

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5
Q

Exceptions to the Scope of IAS 41

In my invisible farm, I have a mango tree from the gov.

A
  1. bearer plants ( PAS 16) and related
    government grants (PAS 20)
  2. intangible assets related to agri act (PAS 38)
  3. land related to agricultural activity (sakahan) PAS 16
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6
Q

A bearer plant is a ________ plant that is used in the production or supply of _____ expected to bear produce for ____ than one period,
and has a ____ likelihood of being sold as agricultural produce, except for incidental scrap sales.

A

living
agricultural produce
more than
remote

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7
Q

Features of agriculture

A
  1. capability to change (biological transformation)
  2. management of change
  3. measurement of change
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8
Q

3 Capability to change- biological transformation

GDP

A
  1. growth
  2. degeneration
  3. procreation
  4. production of agri produce
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9
Q

what distinguishes agricultural activity from other activities?

A

MANAGEMENT OF CHANGE

IKAW ANG DAHILAN NG PAGBABAGO

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10
Q

the change in quality or quantity brought about by biological transformation or harvest is measured and monitored as a routine management function.

A

MEASUREMENT OF CHANGE

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11
Q

Types of Biological asset

A 
Bio Asset
1. As to Consumption
a. Consumable (namamatay or nawawala pag hinarvest)
Plant   
Animal 
b. Bearer (taga dala)
Plant (PAS 16)
Animal
2. As to Maturity
a. mature
b. immature
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12
Q

All animals related to agri activity are biological assets.

All plants related to agri act are biological asset

A

True

False, bearer plant is under PAS 16

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13
Q

Special considerations on Bearer Plant

A
  1. Agri produce still on the bearer plant is still under PAS 41
  2. DUAL use makes it Biological Asset
    • to bear
    • to be sold itself
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14
Q

3 Recognition rule for Biological Asset or an agri produce

A
  1. control over the asset (unique)
  2. PROBABLE future economic benefit
  3. FV or COST can be measured reliably
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15
Q

Initial measurement of Biological asset

rebuttable

A

FVLCTS

  • change is recognized in p/l
  • if FV is not available, may use CA or cost then update mo na lang (not applicable to subsequent measurement)
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16
Q

Subsequent measurement of Biological Asset

conclusive

A

FVLCTS

17
Q

FV hierarchy

PFRS 13

A

Level 1
Level 2
Level 3

18
Q

LEVEL 1

A

quoted prices in an active market

ACTIVE MARKET

  1. principal market (greatest volume and level of activity for the asset or liabiltiy)
  2. most advantageous market (generates the highest proceed in the transaction)
19
Q

LEVEL 2

A

observable inputs either directly or indirectly
similar assets in an active market
identical or similar assets in an inactive market

20
Q

Level 3

A

unobservable inputs

developed by the entity using best available info

21
Q

Initial measurement of Agri Produce

conclusive

A

FVLCTS

*FV is always determinable

22
Q

Subsequent measurement of Agri Produce

conclusive

A

LCNRV (if inventory siya)
if PPE
- Cost Model
- Revaluation Model

therefore, depende na kung ano na si agri produce after harvest
pag silent Inventory

23
Q

Incremental cost directly attributable to the disposal of the an asset,

A

cost to sell
(TLC)

Transfer taxes and duties
Levies by regulatory bodies
Commission to broker

24
Q

3 Gain or Loss relating to Agri

p/l

A
  1. initial recognition
  2. change in FV
  3. Government grant
25
Q

G/L arising from initial recognition

A

Biological Assets
Outlay > Initial Measurement = Loss
Outlay < Initial Measurement = Gain

BA……………….xxx
Loss…………….xxx
Cash……………..xxx
Gain………………xxx

Agri Produce from
a. Bearer plant (automatic gain)
Inventory…………..xxx
Gain………………….xxx

b. consumable
Inventory…………..xxx
Loss…………………..xxx
BA………………………….xxx
Gain……………………….xxx

26
Q

G/L arising on changes in FV

A

PHYSICAL CHANGE (different age @ 12/31)
End age price @ 12/31
- Beg age price @ 12/31

+ FVLCTS of newborn

PRICE CHANGE (same age, different time)
Beg age price @ 12/31
- Beg age price @ any time

27
Q

G/L arising from Government Grant

related to agri activity

A

INCOME

  1. Unconditional - when receivable
  2. conditional - conditions were met
  3. conditional with terms related to time - Straight line
28
Q

Presentation and Disclosure
Bio Asset
Agri Produce

A

NCA

CA

29
Q

Disclosure related to Bio Asset and Agri Produce

Encouraged but not required

A
  1. consumable and bearer bio asset
  2. mature and immature bio asset
  3. breakdown of total gain or loss in FVLCTS related to PIRCE and PHYSICAL change
30
Q

Determination of FV

binibili ang bio asset or agri produce sa FARM

A

Fair Value - transport cost

FV niya sa market (binyahe pa yung bio asset or aagri produce) so ibabawas mo siya kasi pwede naman siya bilhin sa FARM

FINANCIAL ACOCUNTING AND REPORTING (4 decks)

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