IAS 41 Agriculture

IAS 41 Agriculture applies to

• Biological assets, except for bearer plants

• Agricultural produce at the point of harvest

• Government grant related to a biological asset

• Agricultural produce at the point of harvest and after harvest

IAS 41 Agriculture does not apply to

• Land related to agricultural activity

• Bearer plants related to agricultural activity

• Government grants related to bearer plants

• Intangible assets related to agricultural activity

An entity shall recognise a biological asset or agricultural produce when and only when :

• The entity controls the asset as a result of past events

• It is probable that future economic benefits associated with the asset will flow to the entity

• All of these

• The fair value or cost of the asset can be measured reliably

A biological asset shall be measured at

• Fair value less costs to sell

• Cost less accumulated depreciation less accumulated impairment losses

Any changes in fair value less costs to sell should be included in profit or loss for the period in which it arises

• True

• False

Initially measured at fair value less costs to sell but later on the entity change to cost less accumulated depreciation less accumulated impairment losses

• Can

• Cannot

When biological assets are physically attached to the land and active market only exist for the combined assets

• Use the fair value of the combined assets less fair value of the land and land improvements

• Use cost less accumulated depreciation less accumulated impairment losses

A bearer plant is a living plant that

• Is used in the production or supply of agricultural produce

• Is expected to bear produce for more than one period

• Has a remote likelihood of being sold as agricultural produce, except for incidental scrap sales

• Has more than a remote likelihood of being sold as agricultural produce, other than as incidental scrap sales