Question

In accordance with IAS 41 Agriculture, which of the following statements is correct? A fruit tree...

In accordance with IAS 41 Agriculture, which of the following statements is correct?

A fruit tree is initially measured at cost

Dairy cattle are initially measured at fair value

Stores of harvested tea are within the scope of IAS 41

A gain on remeasurement of sheep to fair value is reported in other comprehensive income

Homework Answers

Answer #1

i hope you will rate my ans positively.

correct ans is (b) Dairy cattle are initially measured at fair value

IAS 41 impacts those agricultural activities where the income-producing biological assets are living animals or plants and will include the harvested produce of these assets eg if the biological asset is dairy cattle, the agricultural produce is milk or the same distinction could be made with trees in a plantation/felled trees or sugarcane/harvested cane Biological assets do not include bearer plants.

This Standard is applied to agricultural produce, which is the harvested product of the entity’s biological assets, only at the point of harvest. Thereafter, IAS 2 Inventories or another applicable Standard is applied. Accordingly, this Standard does not deal with the processing of agricultural produce after harvest. for eg tea is harvested from leaf and bushes.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Question 1. Which of the following are enhancing qualitive characteristics of financial statements according to the...
Question 1. Which of the following are enhancing qualitive characteristics of financial statements according to the Board's Conceptual Framework for Financial Reporting? 1 Understa ndablilty 2 Accuracy 3 Timeliness 4 Comparability (A) 1, 2, 3 and 4 (B) 2, 3 and 4 only (C) 1, 3 and 4 only (D)1, 2 and 3 only Question 2. In accordance with IAS 41 Agriculture, which of the following statements is correct? (A) A fruit tree is initially measured at cost (B) Dairy...
Question 17. Which of the following statements regarding own-occupied property and IAS 16 are correct? 1....
Question 17. Which of the following statements regarding own-occupied property and IAS 16 are correct? 1. The cost of an item of PPE may include the estimated costs of dismantling it in the future. 2. All increases and decreases in the carrying amount of a property measured using the revaluation model are recognised in OCI. 3. All items of property, plant and equipment must be depreciated. 4. A change in residual value is applied retrospectively. 1 and 2 1 and...
Which of the following statements with respect to Registered Retirement Income Funds (RRIFs) is correct? An...
Which of the following statements with respect to Registered Retirement Income Funds (RRIFs) is correct? An individual can make non-deductible contributions to a RRIF. Earnings accumulate within the RRIF on a tax free basis. A RRIF can only be established by individuals over the age of 71. The minimum annual withdrawal from a RRIF is always determined by dividing the fair market value of the assets in the plan by 90, less the age of the beneficiary at the beginning...
8. According to IAS 39 and IFRS 9, which is true about the classification of financial...
8. According to IAS 39 and IFRS 9, which is true about the classification of financial assets and financial liabilities? A. Bonds payable should be classified as financial liability measured as fair value B. Held to maturity investments should be classified as financial assets measured as fair value. C. Loans and receivables should be classified as financial assets measured as amortized cost. D. Deposits from customers should be classified as financial liabilities measured as fair value. 9. Under IFRS, if...
Which of the following statements is true of the LIFO cost flow assumption a. LIFO yields...
Which of the following statements is true of the LIFO cost flow assumption a. LIFO yields a higher net income than FIFO and averaging in a period of rising prices. b. LIFO provides a better matching of current costs and expenses. c. LIFO yields a higher cost of goods sold than other costing methods, in periods of falling prices. d. LIFO yields a lower ending inventory than other costing methods, in periods of falling prices. e. LIFO puts the earliest...
During the trial, lawyers for the accused said that the men believed that the accounting decisions...
During the trial, lawyers for the accused said that the men believed that the accounting decisions they made were appropriate at the time, and that the accounting treatment was approved by Nortel’s auditors from Deloitte & Touche. Judge Marrocco accepted these arguments. Marrocco added he was “not satisfied beyond a reasonable doubt” that the trio (i.e., Dunn, Beatty, and Gollogly) had “deliberately misrepresented” financial results. Given the facts of the case, do you believe Judge Marrocco’s decision was justified? Explain....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT