BIOLOGICAL ASSETS - IAS 41

Question 1

the transformation of biological assets into agricultural produce

the management of agricultural activity

Answer 1

agricultural activity

agriculture

Question 2

biological asset

Answer 2

living plants and living animals

• related to agriculture

Question 3

agricultural produce

Answer 3

harvested products of the biological assets

Question 4

Scope of IAS 41

Answer 4

all biological assets

agri produce at POINT OF HARVEST

Question 5

Exceptions to the Scope of IAS 41

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

Answer 5

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

Question 6

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.

Answer 6

living
agricultural produce
more than
remote

Question 7

Features of agriculture

Answer 7

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

Question 8

3 Capability to change- biological transformation

GDP

Answer 8

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

Question 9

what distinguishes agricultural activity from other activities?

Answer 9

MANAGEMENT OF CHANGE

IKAW ANG DAHILAN NG PAGBABAGO

Question 10

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

Answer 10

MEASUREMENT OF CHANGE

Question 11

Types of Biological asset

Answer 11

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

Question 12

All animals related to agri activity are biological assets.

All plants related to agri act are biological asset

Answer 12

True

False, bearer plant is under PAS 16

Question 13

Special considerations on Bearer Plant

Answer 13

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

Question 14

3 Recognition rule for Biological Asset or an agri produce

Answer 14

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

Question 15

Initial measurement of Biological asset

rebuttable

Answer 15

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)

Question 16

Subsequent measurement of Biological Asset

conclusive

Answer 16

FVLCTS

Question 17

FV hierarchy

PFRS 13

Answer 17

Level 1
Level 2
Level 3

Question 18

LEVEL 1

Answer 18

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)

Question 19

LEVEL 2

Answer 19

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

Question 20

Level 3

Answer 20

unobservable inputs

developed by the entity using best available info

Question 21

Initial measurement of Agri Produce

conclusive

Answer 21

FVLCTS

*FV is always determinable

Question 22

Subsequent measurement of Agri Produce

conclusive

Answer 22

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

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

Question 23

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

Answer 23

cost to sell
(TLC)

Transfer taxes and duties
Levies by regulatory bodies
Commission to broker

Question 24

3 Gain or Loss relating to Agri

p/l

Answer 24

1. initial recognition
2. change in FV
3. Government grant

Question 25

G/L arising from initial recognition

Answer 25

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

Question 26

G/L arising on changes in FV

Answer 26

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

Question 27

G/L arising from Government Grant | related to agri activity

Answer 27

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

Question 28

Presentation and Disclosure Bio Asset Agri Produce

Answer 28

NCA | CA

Question 29

Disclosure related to Bio Asset and Agri Produce | Encouraged but not required

Answer 29

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

Question 30

Determination of FV | binibili ang bio asset or agri produce sa FARM

Answer 30

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