Chapter 8 (AGRICULTURE)

Question 1

• Farming/ process of producing crops, raising livestock

Answer 1

Agriculture

Question 2

• Management by entity biological transform and harvest bio asset for sale (exchange/ nonexchange)
• Raising livestock, forestry, plantation

Answer 2

Agricultural Activity

Question 3

a. capability to change
b. Management of chang
c. Measurement of change

Answer 3

Common features of agricultural activities

Question 4

animal and plants (biological transformation

Answer 4

capability to change

Question 5

management facilitate biological transformation

Answer 5

Management of change

Question 6

change in quantity & quality measured (routine management function)

Answer 6

Measurement of change

Question 7

process that cause qualitative/quantitative changes
1.asset change trough
2. Production of agricultural produce

Answer 7

Biological transformation

Question 8

increase in quantity; improvement quality

Answer 8

a) Growth

Question 9

creation additional living

Answer 9

b) Procreation

Question 10

decrease quantity; deterioration quality

Answer 10

c) Degeneration

Question 11

• Living plant/animal

Answer 11

Biological Asset

Question 12

• Harvest product from BA

Answer 12

Agricultural produce

Question 13

Recognition of BA/ agricultural produce

Answer 13

• Meets criteria of asset; reliable measurement (fv or cost)

Question 14

Measurement of BA

Answer 14

• Initially and subsequently measured at FV less cost to sell

Question 15

• BA cannot be determined, initial measurement

Answer 15

cost

Question 16

BA cannot be determined, subsequent measurement

Answer 16

cost -AD – impairment loss)

Question 17

Masurement of agricultural produce

Answer 17

• FV less cost to sell

Question 18

• Recognized in surplus/deficit

Answer 18

Gain from IM

Question 19

• Incremental costs (disposal of assets) exclude finance costs

Answer 19

Cost to sell

Question 20

a. FV
b. determination of FV – groupings (age/quality)
c. cost approximate FV
a. little biological transformation
b. impact of the BT
d. BA attached to land as package
e. BA measured at FV less cost to sell until disposed

Answer 20

Determination of FC

Question 21

FV formula

Answer 21

Quoted price (active market)
Less; transportation cost
FV

Question 22

• Items (homogeneous)
• Willing buyers & sellers (found anytime)
• Prices available to public

Answer 22

Active Market

Question 23

• More than 1 active market,

Answer 23

use price in the market (expected)

Question 24

• No active market

Answer 24

estimate price
a. most recent market price
b. market prices from similar markets
c. sector benchmarks
d. PV of expected net cash flows

Question 25

irrelevant

Answer 25

- Contract prices

Question 26

costs getting asset to the market

Answer 26

- Transportation costs

Question 27

a. gain or loss on initial recognition of BA b. consumable & bearer BA , BA sale & distribution c. Mature and immature BA d. Amount change in FV less cost to sell

Answer 27

Disclosures

Question 28

Fvlcs, end, age beg) – (Fvlcs, beg, age beg) x qty

Answer 28

- Due to physical change