IAS 41

Question 1

Disclosures - Basis for distinction between?

Answer 1

Consumable Biological Assets, Bearer biological assets, mature biological assets.

Question 2

Reconciliation

Answer 2

Initial recognition :
Cost + Gain/(loss)
Increase due to price
Increase due to physical change
Less Sales or disposal or harvest
Less Transfer to IAS2
Add less exchange difference
Add consolidation inventory
Other changes

Question 3

Other informational disclosures [6]

Answer 3

1. Nature of agricultural activity (cattle farm)
2. Qty of each group item (500 cows)
3. Qty of produce for the period (3000l milk)
4. Existence and carrying amount of biological assets with restricted title
5. Carrying amount of biological assets pledged as securities
6. Commitments for development or acquisition of biological assets
7. Financial risk management strategy regarding biological assets

Question 4

Additional disclosures when FV is not reliably measurable

Answer 4

1. Description
2. Explanation why fv cant be measured
3. Range of estimates of fv
4. Depreciation method
5. Useful lives or depreciation rates
6. Gross carrying amount and acc dep
7. Any gain loss on disposal

Question 5

Reconciliation in case of fv unreliable (3)

Answer 5

8. Impairment losses
9. Reversal of impairment losses
10. Depreciation

Question 6

If FV subsequently becomes reliable then disclose

Answer 6

1. Description of bio assets
2. Explanation of why it’s become reliable
3. Effect of change

Question 7

Government grant on IAS41 [3]

Answer 7

1. Nature and extent of grant recognized in fs
2. unfulfilled conditions of govt grant
3. Significant decreases expected in the level of govt grant