IAS-41 Agriculture

Question 1

Definition:
Biological Asset
Agricultural Produce
Harvest

Answer 1

BA-Living plant or animal
AP-Harvested produce from BA
H-Detachment of produce from asset

Question 2

Recognition criteria - when should you recognise

Answer 2

When it has control
Can be reliably measured
When expected that the BA will produce economic benefits

Question 3

Measurement

Answer 3

BA- FV less costs to sell
-Remeasured at every period
-Gains or losses to profit and loss
AP-FV less cost to sell @ point of harvest
-Then taken to inventory and fv-selling cost is cost

Question 4

Other points
Change in values
Grants

Answer 4

• When measuring the change in the value of the BA (e.g. cows), part due to age and part to market price change.
• It is not mandatory to separate these but is encouraged.
• Unconditional grants recognised when one becomes entitled to it.
• Conditional grants recognised when conditions met.