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WorksheetsMFRS141 - AGRICULTURE
Total questions: 15
Worksheet time: 15mins
The accounting treatment for gain or loss for biological assets should be included in
Asset register
Statement of profit and loss
Statement of financial position
Cash flow statement
Which of the following is not dealt with by MFRS 141 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
Which of the following is NOT an example of agricultural activity?
Cultivating orchards
Floriculture
Fish farming
Sale of harvested crops
Subur Plantation received a government grant to plant trees. These trees will be felled and sold as logs to be processed into furniture material. The grant requires Subur Plantation to plant in Kuala Kangsar for 5 years and return the entire grant if it plant for a period shorter than stipulated. State when Subur Plantation can recognised the grant received?
When the income received
When 5 years have passed
When the farm finished planting the tress
When the farm able to sell the felled trees
Agricultural activity is the management of the biological transformation of biological assets: (You may tick one or more of the answer option)
For sale.
Into agricultural produce.
Into additional biological assets.
None of the above
The main issues covered by MFRS 141 are:
Recognition of biological assets and agricultural produce
Measurement of biological asset and agricultural produce
The accounting treatment of the transformation process
All of the above
Biological assets and agricultural produce are recognised when and only when:
The entity controls the asset as a result of past events
It is probable that future economic benefits will flow to the entity
The fair value or cost of the assets can be measured reliably
All of the above
MFRS 141 is applied to agricultural produce:
Before the harvest
Only at the point of harvest
After the harvest
Before, during and after the harvest
A biological asset initially acquired at a cost of RM13,000 on 1 July 2018. On 30 June 2019 the cost to sell is RM3,200 and the asset has been actively traded at RM18,000. Calculate the amount to be recognised in statement of profit and loss for the year ended 30 June 2019.
RM9,800
RM14,800
RM1,800
RM5,000
Four of the calves own by MooMok Enterprise have given birth to three newborn calves on 11 January 2020. The market price for newborn calf is RM75 each. Which of the following is the correct journal entry to record the birth?
Dr Biological asset RM225, Cr Cash RM225
Dr Biological asset RM225, Cr Fair value gain RM225
Dr Biological asset RM225, Cr Revenue RM225
Dr Biological asset RM225, Cr Capital RM225
Babablacksheep Bhd own a herd of 120 cattle which are saleable in their current condition. Of this herd, 70 cattle have been earmarked for sale in Thailand whilst the balance will be sold in the local market. The market price of the 70 cattle in the Thailand market is RM160,000 and cost of transport to get the herd to Thailand is estimated at RM8,000. The market price of the remaining 50 cattle is estimated at RM115,000 and cost of transport is estimated at RM2,500. Commissions to brokers and other point-of sale costs are estimated at 3% of the market price in each market. Compute the fair value less point-of-sale costs of the biological assets.
Thailand Market RM146,000; Local Market RM109,600
Thailand Market RM145,650; Local Market RM109,650
Thailand Market RM147,200; Local Market RM109,050
Thailand Market RM147,500; Local Market RM109,550
Kobow Enterprise involved purchased 150 mature calves on 1 July 2019. On 22 August 2019, the business managed to sell 85 calves at purchase price of RM120 each. The transportation cost for sending the calves is 5% from the selling price. Which of the following is the correct journal entry for transaction on 22 August 2019?
Dr Cash RM9,690; Dr Transportation RM510; Cr Sales RM10,200
Dr Cash RM9,690; Cr Biological Asset RM9,690
Dr Cash RM9,690; Dr Transportation RM510; Cr Biological Asset RM10,200
Dr Cash RM9,690; Cr Sales RM9,690
On 1 January 2019, a calf is born. The estimated fair value less point-of-sale costs of a day old calf is RM400. As at 31 December 2019, the calf is about a year old and has an estimated fair value less estimated point-of- sale costs of RM1,200. Calculate gain or loss to be recognized in the Statement of profit loss for the year 2019
Initial gain RM400, Gain due the changes in FV RM800
Initial gain RM450, Gain due the changes in FV RM850
Initial gain RM400, Gain due the changes in FV RM900
Initial gain RM450, Gain due the changes in FV RM950
Which of the following does define “bearer plant”?
A living plant that is used in the production or supply of agricultural produce
A living plant that is expected to bear produce for more than one period
A living plant that has a remote likelihood of being sold as agricultural produce, except for incidental scrap sales
All of the above
Dolphins, which are used for recreational purposes in water parks, should be classified in accordance with
MFRS141
MFRS116
MFRS102
MFRS140
