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WorksheetsPAS 41: QUIZ
Total questions: 15
Worksheet time: 15mins
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
An entity is required to provide a quantified description of each group of biological assets, distinguishing between consumable and bearer biological assets or between mature and immature biological assets, as appropriate (TRUE OR FALSE)
TRUE
FALSE
Cost may sometimes approximate fair value, particularly when
I. little biological transformation has taken place since initial cost incurrence
II. The impact of the biological transformation on price is expected to be material
I only
II only
Both I and II
Either I or II
An unconditional government grant related to a biological asset that has been measured at fair value less costs to sell should be recognized as
income when grant becomes receivable
a deferred credit when the grant becomes receivable
income when the grant application has been submitted
a deferred credit when the grant has been approved
Which of the following would be classified as agricultural produce?
Lumber
Bush
Butter
Apple
Where the fair value of the biological asset cannot be determined reliably, the biological asset should be measured at
cost
cost less accumulated depreciation
cost less accumulated depreciation and accumulated impairment loss
net realizable value
