Reveal answer. However, I have a doubt. Chapter 19. Thank you a lot. Isn’t it wise therefore to move the bear animals too from this standard? I just have one question if you don’t mind. It is clear that the piglets meant for sale are biological assets but are the sows which are not meant for sale, be considered as bearer plants and treated under IAS 16? Reveal answer. The reason is that fish grew naturally in the ocean, which was NOT an agricultural activity. Since my ACCA days, I was still unsure when IAS 41 or related areas were concerned. S. OH OK thanks.SO you mean dairy cows and heifers are accounted for under IAS 41? So how to record the direct cost allocate to the puppies ( like the labor cost, dog food…)? please we have farm where we are rearing them for milk till they will started produce milk. My next article will be about it, so please watch out , Dear Silvia, Thanks for your response. Hi Sushant, need solution for the flowing question and forward solution on the following e-mail awaisanwar1988@gmail.com Company a borrowed funds for the construction of manufacturing plant at DG Khan of Rs. Thank you, Jerad, I appreciate your kind words and your offer, too . 036: Contract asset vs. account receivable. You might think: “well, biological assets are governed by IAS 41, so I need to measure the dog at fair value at the end of each year”. As it was difficult and impractical to set the fair value of these assets at the end of each reporting period, they were taken out of IAS 41’s scope. In the pig farming business, one has a dedicated number of specially selected sows to produce piglets. IAS 41 Agriculture 2017 - 07 2 Costs to sell are the incremental costs directly attributable to the disposal of an asset, excluding finance costs and income taxes. Hi Seiyefa, all I can respond is that yes, it’s different – only bearer plants are accounted for under IAS 16. Click on the subject title to open then Download in the new page or open the subject title as a new tab. So, if you think that OK, I’m not a farmer, so I don’t need to bother with IAS 41, you might be surprised where the agriculture can hide. Reveal answer. Thank you Silvia, this information is a very useful guide on agriculture and biological assets. Important General Studies Questions for Prelims Acowtancy. i will appreciate your quick respond. What is the best method to measure the cost of this? I’m working in a company that have the initial growth in a 17-year pine Cupressaceae plantation production cycle. I am currently working in a horse breeding and racing business. Until then, please leave a comment right below this video and let me know your own agricultural issues. You do NOT remeasure agricultural produce to fair value less cost to sell. Hi. Question 3d - June 2016 Sample. NEW: Online Workshops – US GAAP, IFRS and other, this podcast episode will give you the answer. Agricultural activity is the management by an entity of the biological transformation (the process of growing, degenerating, production and procreating that causes qualitative or quantitative change in the biological asset. The questions and answers that have been added, deleted or substantially expanded in this edition are highlighted in the Appendix: Index of questions and answers . Dear Silvia, Here’s why: Practicing with the question papers of IAS helps you understand the IAS exam pattern i.e., number of questions, average time for each question, difficulty level of questions … Agricultural produc… IFRS® is the IFRS Foundation’s registered Trade Mark and is used by Simlogic, s.r.o report "Top 7 IFRS Mistakes" + free IFRS mini-course. 42. can you use prepaid inputs purchased in dec of 2013 and paid with post dated cheque jan 2 2014 d, What is the Accounting Treatment for the Eggs in the Farm, What are the arguments for and against the use of fair value as the measurement basis, IFRS 1 - First-time Adoption of International Financial Standards, IFRS 5 - Non-current Assets Held for Sale and Discontinued Operations, IFRS 6 - Exploration for and Evaluation of Mineral Assets, IFRS 7 - Financial Instruments: Disclosures, IFRS 10 - Consolidated Financial Statements, IFRS 12 - Disclosure of Interests in Other Entities, IFRS 15 - Revenue from Contracts with Customers, IAS 1 - Presentation of Financial Statements, IAS 8 - Accounting Policies, Changes in Accounting Estimates and Errors, IAS 10 - Events After the Reporting Period, IAS 20 - Accounting for Government Grants, IAS 21 - The Effects of Changes in Foreign Exchange Rates, IAS 26 - Accounting and Reporting by Retirement Benefit Plans, IAS 28 - Investments in Associates and Joint Ventures, IAS 29 - Financial Reporting in Hyperinflationary Economies, IAS 32 - Financial Instruments: Presentation, IAS 37 - Provisions, Contingent Liabilities and Contingent Assets, IAS 39 - Financial Instruments: Recognition and Measurement, Recent questions and answers in IAS 41 - Agriculture. Marking guide. Dear Silvia, Thanks Silvia. under licence during the term and subject to the conditions contained therein. Chapter 10. We love you. IFRS 05 or IAS 41 ? Can you please clarify, in what situation loss can arise on initial recognition of biological asset. The harvested agricultural produce from the biological assets are measured at fair value less cost to sell and accounted under inventories (LKAS 02). what are the accounting entries for IAS 41? 896 others have taken this question. Thank you. IAS 41 requires number of disclosures. The fair value less the estimated point of sale costs of the flower trees at 30th June 2016 ( the end of the I think this podcast episode will give you the answer. Infoedge Interview Aptitude Problem. With regards to bearer plants, how will you account the insecticides and pesticides applied for their fruits? In this case, IAS 41 applies, because breeding and selling puppies is an agricultural activity. Inventory (IAS 2) Chapter 10. 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