IAS 41 by KA

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IAS 41 is not applicable on agricultural produce from bearer plants, rather IAS 16 is applied.

• True

• False

The cost model is not an acceptable method for measuring biological assets.

• True

• False

If an entity uses the fair value less cost to sell to measure its biological assets, it is required to recognize any gains or losses arising from changes in fair value in other comprehensive income.

• True

• False

When an entity further processes agricultural produce that was harvested from its biological assets, it should continue to apply IAS 41.

• True

• False

IAS 41 applies to all biological assets that are used for production, such as crops and trees, but does not apply to animals that are held for breeding purposes.

• True

• False

Gain or loss arising from re-measurement of agricultural produce at fair value less cost to sell at year end is recognised in PL. [2 marks]

• True

• False

An entity can choose to measure its biological assets using either the cost model or the fair value model, but the choice must be applied consistently.

• True

• False

If an entity uses the cost model to measure its biological assets, it should recognize any gains or losses arising from changes in fair value in profit or loss. [2 marks]

• True

• False