ACCA FR Chapter 10 Agriculture (IAS 41) Questions
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Hi,
Can someone please tell me why haven’t the 3,000 Ls of milk(Q1.) and 4,000 tons of grapes(Q2.) were not considered as the answer as they are the agricultural produce from the cows and grapevines?
Many Thanks
I think it is because they are already the final products that can not be used in the production or supply of other agricultural produce
Because they are final agricultural products held in the werehouse for further processing and therefore valued under inventory IAS 2, not IAS 41.
I guess the choices were not edited in accordance with the amended standards.
Grape vine should be under PPE…
Hi.
Question 2, the answer is supposed to be the second option i.e at the point of harvest as grape vines are a bearer plant and are supposed to be accounted for in accordance to IAS 16 (Property, Plant and Equipment). The rest of the interpretation of the standard is correct- intangible assets relating to agricultural activity as well as land are outside the scope of the standard.
Hi,
In practice question 2 on Agriculture – I guess there is no right answer as there was an amendement to IAS 41 on bearer plants which were excluded from IAS41 scope?
Thanks