PAS 41: QUIZ

Which statement is incorrect regarding gains and losses on biological assets?

•     A gain may arise on initial recognition of a biological asset

•  A loss may not arise on initial recognition of a biological asset

•    A gain or loss on biological asset measured at fair value less cost to sell shall be included in profit or loss for the period

•        None of the above

Inventories comprising agricultural produce that an entity has harvested from its biological assets are measured on initial recognition at

• Fair value less costs to sell at the point of harvest

• Cost

• Fair value less cost to sell

• Lower of cost and net realizable value

Which statement is incorrect regarding bearer plants?

•     Tea bushes, grape vines, oil palms and rubber trees usually meet the definition of a bearer plant.

• None of the above

•     The produce growing on bearer plants, for example tea leaves, grapes, oil palm fruit and latex is within the scope of PAS 41

•          Incidental scrap sales would prevent the plant from satisfying the definition of a bearer plant

Which of the following is not considered a biological asset?

• Trees in a plantation forest

• Land related to agricultural produce

• Hogs and poultry

• Strawberry plants

Which of the following is a biological asset that is accounted for under PAS 41?

• mango tree

• harvested mango fruit

• rice plant

• extra rice

   Bearer biological assets include

•         Livestock intended for the production of meat

•        Livestock held for sale

•         Livestock from which milk is produced

•      Crops such as maize and wheat

Consumable biological assets include

•           Grape vines

•   Fruit trees

•        Trees from which firewood is harvested while the trees remain

• Trees being grown for lumber

Which of the following is not dealt with by PAS 41 (Agriculture)?

• The accounting for biological assets

• The initial measurement of agricultural produce harvested from the entity’s biological assets

•      The processing of agricultural produce after harvesting

•   The accounting treatment of government grants received in respect of biological assets

An entity owns a number of herd of cattle. Where should changes in fair value of a herd cattle be recognized in the financial statements?

• In profit or loss only

• In other comprehensive income

• In profit or loss or other comprehensive income

• In the statement of cash flows only

Agricultural produce is measured at fair value less cost to sell at the point of harvest

• a) except when fair value cannot be measured reliably, in which case, the initial measurement is at cost

• b) except when cost to sell cannot be measured reliably, in which case, the initial measurement is at fair value

• a or b

• without exception