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Hello Sir,
referring to the below QIs there any depreciation on biological assets and agriculture produce and how we have to deal with that in the exam,
is there any chance that we have to calculate that or mention it in the financial statements.Thanks,
Q
Which of the following statements about IAS 41 – Agriculture is correct?
A) Bearer plants are included in the scope of IAS 41.
B) Land related to agricultural activity is included in the scope of IAS 41.
C) If the fair value cannot be measured reliability, biological assets can be measured
at cost less accumulated depreciation and impairment losses.
D) If the fair value cannot be measured reliability, agricultural produce can be
measured at cost less accumulated depreciation and impairment losses.Answer is C
Hi,
No, there is no depreciation on biological assets. They are measured at fair value with gains/losses going through profit or loss.
Thanks
Hi Sir,
But I wonder from the option C it says C) If the fair value cannot be measured reliability, biological assets can be measured
at cost less accumulated depreciation and impairment losses.how to fit that ,
Thanks,
Yes, if we cannot measure fair value then we have to have an alternative method per the standard but it would be rare not to have a fair value given the markets available for selling agricultural products.
Thanks
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