Chapter 6- Agriculture And Inventories Flashcards
1
Q
What is a biological asset?
A
A living plant or animal
2
Q
What is agriculture produce?
A
Produce harvested from a biological asset
3
Q
How should you recognise biological assets initially?
A
Recognise at fair value less costs to sell
4
Q
How to recognise biological assets at year end?
A
Revalue to fair value less costs to sell, recognise gain or loss in profit and loss
5
Q
How to recognise agricultural produce initially?
A
Recognise at fair value less costs to sell, and then immediately reclassify as inventories
6
Q
How to recognise agriculture grants?
A
Recognise in profit and loss when conditions met
7
Q
How do you measure inventories?
A
Lower of cost and net realisable value
8
Q
How is net realisable value calculated?
A
Expected selling price less expected costs to sell
