Chapter 19 Flashcards
(32 cards)
What standard covers biological assets and agricultural produce?
PAS 41 Agriculture
What is the difference between biological asset and agricultural produce?
Biological Asset - living animal or plant
Agriculture Produce - harvested produce of the entity’s biological assets
This is the detachment of produce from a biological asset or the cessation of a biological asset’s life processes.
Harvest
True or False: Accounting for biological assets and agricultural produce are the same.
False.
True or False: All items under biological assets and agricultural produce are included in the PAS 41, Agriculture.
False.
True or False: Animals displayed in zoos, bearer plants and plants used in landscaping and ornamentation are under PAS 41.
False.
They are under PAS 16, PPE
True or False: Pets sold in pet shop and potted plants sold commercially are under PAS 41.
False.
They are under PAS 2, Inventories
True or False: Agricultural produce after the date of harvest are part of PAS 2 Inventories and not PAS 16, PPE.
True.
True or False: Bearer animals are part of PAS 16, PPE and not PAS 41, Agriculture.
False.
It is under PAS 41
True or False: Land used in agricultural activities are part of PAS 41, Agriculture.
False.
It is under PAS 16, PPE.
This is the management by an entity of the biological transformation and harvest biological assets for sale or for conversion into agricultural produce or into additional biological assets.
Agricultural Activity
Which paragraph of the PAS 41 defines agricultural activity?
Paragraph 5
This is the asset change through an increase in quantity or improvement in quality of an animal or plant.
Growth
This is the asset change through a decrease in the quantity or deterioration in quality of an animal or plant.
Degeneration
This is the creation of additional living animals or plants.
Procreation
This is the change of biological assets.
Biological Transformation
True or False: PAS 41 requires agricultural biological assets be classified as either consumable or bearer biological assets.
False.
It is not required rather only encouraged.
These are biological assets that are to be harvested as agricultural produce or sold as biological assets.
Consumable biological assets
These are biological assets that are not agricultural produce but, rather, are held to bear produce.
Bearer biological assets
Bearer or Consumable biological assets:
1. Livestock intended for the production of meat.
2. Fish in farm
3. Fruit trees from which fruit is harvested
4. Trees being grown for lumber.
5. Sheep from the wool is harvested.
6. Crops such as maize and wheat.
7. Livestock from which milk is produced.
8. Chickens from which egg is produced.
9. Produce on a bearer plant
10. Livestock held for sale.
- Consumable
- Consumable
- Bearer
- Consumable
- Bearer
- Consumable
- Bearer
- Bearer
- Consumable
- Consumable
This is a living plant that is used in the production or supply of agricultural produce, expected to bear produce for more than one period, and has a remote likelihood of being sold.
Bearer Plants
How are biological assets measured initially?
On initial recognition
How are biological assets measured at the end of each reporting period?
Fair value less costs to sell
This is the price that would be received to sell an asset.
Fair value