Question

LOLA Ltd has a vineyard and at the end of reporting period 30 June 2021 the...

LOLA Ltd has a vineyard and at the end of reporting period 30 June 2021 the following information is available:

Particulars Amount

Carrying amount of the vineyard, June 30,2020

 7,500,000

Fair value of harvested grapes on June 29,2021

 600,000

Estimated poin of-sale costs of grapes

20,000

Estimated point – of – sale costs of vines as at June 30, 2021

 50,000

Fair value of the vineyard before harvest of grapes on June 29, 2021
7,800,000

What is the change in fair value less estimated point-of-sale costs of the vines for the reporting period 30 June 2021 in accordance with IAS 41 Agriculture?

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Answer #1

As per IAS 41

Whether ir value of the biological asset is not given at the beginning of the accounting period consider the carrying amount as on beginning of the accounting period as fair value of the asset at beginning  

Calculating the change in fair value less estimated point of sale costs of the vines as follows

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