Question 1

Biological assets that are attached to land are not measured separately from the land.

Accepted Answer

A) True 
 B)False  False

Question 2

Which of the following is the order of the hierarchy as prescribed in IAS 41 for approximating fair value of an agricultural asset?

Accepted Answer

A)   Active market price, sector benchmarks, recent transaction price, present value of future cash flows, market price for similar assets
B)   Active market price, market price for similar assets, recent transaction price, sector benchmarks, present value of future cash flows
C)   Active market price, recent transaction price, market prices for similar assets, sector benchmarks, present value of future cash flows
D)   Active market price, present value of future cash flows, market prices for similar assets, sector benchmarks, recent transaction priceE) A) and D)
F) B) and D)

Question 3

Explain the importance of accounting for agricultural assets as it relates to the Conceptual Framework.

Accepted Answer

The answer of Explain the importance of accounting for agricultural...

Question 4

Agricultural produce is measured at fair value less costs to sell at the point of harvest.

Accepted Answer

A) True 
 B)False

Question 5

Explain the following terms:
-Capability of change

Accepted Answer

The answer of Explain the following terms:
-Capability of change...

Question 6

Biological assets should be measured at fair value less the following costs except:

Accepted Answer

A)   Transfer Taxes
B)   Duties
C)   Income Taxes
D)   LeviesE) B) and C)
F) None of the above

Question 7

Explain the following terms:
-Measurement of change

Accepted Answer

The answer of Explain the following terms:
-Measurement of change...

Question 8

Young McDonald Company purchased a tract of land filled with fruit trees whose fruit the company plans to harvest and sell. The only purpose of the purchase was to obtain the biological assets on the land. Therefore, YMC values the land and the biological assets together. Assess the company's valuation approach.

Accepted Answer

The answer of Young McDonald Company purchased a tract of...

Question 9

What is the correct order in the hierarchy specified by IAS 41 to be used by an entity to approximate the fair value of an agricultural asset?
1)  Sector benchmarks
2)  Price for the asset in an active market
3)  Present value of the future cash flows the asset is expected to generate
4)  Market prices for similar assets, with adjustments made for the differences
5)  Recent transaction price

Accepted Answer

A)   3, 4, 1, 2, 5
B)   2, 5, 4, 1, 3
C)   1, 3, 4, 5, 2
D)   5, 4, 2, 3, 1E) All of the above
F) A) and B)

Question 10

The fair value of a biological asset or agricultural produce is its market price less any costs to get the asset ready to market. Costs to sell include commissions, transfer taxes and duties.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following features is not a determining factors for an activity to be classified as an agricultural activity?

Accepted Answer

A)   Capability of change
B)   Management of change
C)   Measurement of change
D)   Expectation of changeE) All of the above
F) A) and B)

Question 12

Subsequent changes in the value of biological assets are recognized in other comprehensive income.

Accepted Answer

A) True 
 B)False  False

Question 13

An entity is allowed to group biological assets with similar characteristics for measurement purposes.

Accepted Answer

A) True 
 B)False

Question 14

According to IAS 41, once the fair value of a biological asset becomes determinable, the asset:

Accepted Answer

A)   Must be recorded at cost less any accumulated depreciation and accumulated impairment costs.
B)   Must be recorded at fair value less finance costs.
C)   May be recorded at either cost or fair value.
D)   None of the above.E) C) and D)
F) B) and C) D

Question 15

Explain the following terms:
-Management of change

Accepted Answer

The answer of Explain the following terms:
-Management of change...

Exam 41: Agriculture

Biological assets that are attached to land are not measured separately from the land.

Correct Answer
verified
False

Which of the following is the order of the hierarchy as prescribed in IAS 41 for approximating fair value of an agricultural asset?

Correct Answer
verified

Explain the importance of accounting for agricultural assets as it relates to the Conceptual Framework.

Correct Answer
verified

Agricultural produce is measured at fair value less costs to sell at the point of harvest.

Correct Answer
verified

Explain the following terms: -Capability of change

Correct Answer
verified

Biological assets should be measured at fair value less the following costs except:

Correct Answer
verified

Explain the following terms: -Measurement of change

Correct Answer
verified

Correct Answer
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Correct Answer
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The fair value of a biological asset or agricultural produce is its market price less any costs to get the asset ready to market. Costs to sell include commissions, transfer taxes and duties.

Correct Answer
verified

Which of the following features is not a determining factors for an activity to be classified as an agricultural activity?

Correct Answer
verified

Subsequent changes in the value of biological assets are recognized in other comprehensive income.

Correct Answer
verified
False

An entity is allowed to group biological assets with similar characteristics for measurement purposes.

Correct Answer
verified

According to IAS 41, once the fair value of a biological asset becomes determinable, the asset:

Correct Answer
verified
D

Explain the following terms: -Management of change

Correct Answer
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Exam 41: Agriculture

Biological assets that are attached to land are not measured separately from the land.

Correct AnswerverifiedFalse

Which of the following is the order of the hierarchy as prescribed in IAS 41 for approximating fair value of an agricultural asset?

Correct AnswerverifiedShow Answer

Explain the importance of accounting for agricultural assets as it relates to the Conceptual Framework.

Correct AnswerverifiedShow Answer

Agricultural produce is measured at fair value less costs to sell at the point of harvest.

Correct AnswerverifiedShow Answer

Explain the following terms: -Capability of change

Correct AnswerverifiedShow Answer

Biological assets should be measured at fair value less the following costs except:

Correct AnswerverifiedShow Answer

Explain the following terms: -Measurement of change

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The fair value of a biological asset or agricultural produce is its market price less any costs to get the asset ready to market. Costs to sell include commissions, transfer taxes and duties.

Correct AnswerverifiedShow Answer

Which of the following features is not a determining factors for an activity to be classified as an agricultural activity?

Correct AnswerverifiedShow Answer

Subsequent changes in the value of biological assets are recognized in other comprehensive income.

Correct AnswerverifiedFalse

An entity is allowed to group biological assets with similar characteristics for measurement purposes.

Correct AnswerverifiedShow Answer

According to IAS 41, once the fair value of a biological asset becomes determinable, the asset:

Correct AnswerverifiedD

Explain the following terms: -Management of change

Correct AnswerverifiedShow Answer

Correct Answer
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False

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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False

Correct Answer
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D

Correct Answer
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