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34 Cards in this Set
- Front
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Biological assets |
are living animals and living plants. |
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agricultural produce |
is the harvested product of an entity's biological assets |
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harvest |
is the detachment of produce from a biological asset or the cesation of a biological asset's life processes. |
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agricultural activity or agriculture |
is the management by an entity of the biological transformation and harvest of biological assets for sale or for conversion into agricultural produce or into additional biological assets. |
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Biological transformation |
comprises the processes of growth, degeneration, production and procreation that cause qualitative or quantitative changes in a biological asset. |
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growth |
an increase in quantity or improvement in quality of an animal or plant |
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degeneration |
a decrease in quantity or deterioration in quantity of an animal or plant |
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procreation |
creation of additional living animal or plant |
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bearer plants |
should be accounted for in the same way as ppe because the operation of this is similar to that of manufacturing are used solely to grow agricultural produce over several periods |
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b. are living animals and living plants and must be disclosed as a separate line item in the statement of financial position |
biological assets a. are found only in biotech entities b. are living animals and living plants and must be disclosed as a separate line item in the statement of financial position c. must be measured at cost d. do not generally have future economic benefit |
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a. agricultural activity |
it is the management by an entity of the biological transformation and harvest of biological assets for sale or for conversion into agricultural produce or into additional biological asset. a. agricultural activity b. biological activity c. economic activity d. development activity |
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d. production of agricultural produce |
biological transformation results from asset changes through all of the following, except a. growth b. degeneration c. procreation d. production of agricultural produce |
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c. biological asset and agricultural produce |
agricultural activity results in which of the following type of asset? a. biological asset b. agricultural produce c. biological asset and agricultural produce d. neither biological asset nor agricultural produce |
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d. ocean fishing |
agricultural activity includes all of the following except a. raising livestock b. perennial cropping c. aquaculture d. ocean fishing |
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d. all of these are true about biological assets |
which statement is true about biological assets? a. biological assets are measured at fair value less cost of disposal b. when fair value cannot be determined reliably, the biological asset shall be measured at cost less accumulated depreciation and impairment c. there is a presumption that the fair value of biological asset can be measured reliably d. all of these are true about biological assets |
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a. the harvested product from biological asset. |
agricultural produce is a. the harvested product from biological asset. b. measured at the time of harvest at the cost of production c. measured at each reporting period at fair value less cost of disposal d. all of the choices are correct regarding agricultural produce |
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b. fair value less cost of disposal |
agricultural produce as it grows on bearer plant is measured at the end of each reporting period prior to harvest at a. fair value b. fair value less cost of disposal c. fair value plus cost of disposal d. fair value less cost of disposal at the point of harvest |
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b. fair value less cost of disposal at the point of harvest |
agricultural produce harvested from bearer plant is measured at a. fair value b. fair value less cost of disposal at the point of harvest c. cost less cost of disposal d. fair value plus cost of disposal at the point of harvest |
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d. all of these are correct |
the harvested agricultural produce is a. accounted for as inventory b. initially recognized at fair value less cost of disposal at the point of harvest c. recorded as gain from change in fair value of agricultural produce d. all of these are correct |
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d. must possess all of the characteristics |
a bearer plant id a living plant that a. is used in the production or supply of agricultural produce b. is used to bear produce for more than one period c. has a remote likelihood of being sold as agricultural produce, except for incidental scrap sales d. must possess all of the characteristics |
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d. tree in a forest plantation to be harvested and sold as log or lumber |
all of the following can be considered bearer plant, except a. coconut tree b. grape vine c. rubber tree d. tree in a forest plantation to be harvested and sold as log or lumber |
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b. biological asset |
a living plant with a dual use is classified as a. bearer plants b. biological asset c. investment property d. inventory |
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c. property, plant and equipment |
according to IASB, bearer plants are accounted for as a. biological assets with disclosure b. biological assets without disclosure c. property, plant and equipment d. noncurrent investment |
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c. either cost model or revaluation model |
mature bearer plant is measured using
a. cost model b. revaluation model c. either cost model or revaluation model d. either cost model or fair value model |
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a. biological assets |
according to IASB, bearer animals are accounted for as a. biological assets b. property, plant and equipment c. investment property d. agricultural produce |
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b. property, plant and equipment |
animals related to recreational activities are classified as a. biological asset b. property, plant and equipment c. investment property d. intangible asset |
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c. a fair value approach |
generally speaking, biological assets relating to agricultural activity shall be measured using a. historical cost b. historical cost less depreciation less impairment c. a fair value approach d. net realizable value |
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c. an active market for the asset exists |
which of the following criteria must not be satisfied before a biological asset can be recognized? a. the entity controls the asset as a result of past event b. it is probable that future economic benefits relating to the asset will flow to the entity c. an active market for the asset exists d. the fair value can be measured reliably |
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b. in accordance with PAS 16, property, plant and equipment, or PAS 40, investment property |
land that is related to agricultural activity is measured a. at fair value b. in accordance with PAS 16, property, plant and equipment, or PAS 40, investment property c. at fair value in combination with the biological asset d. at the resale value represent from the biological asset. |
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b. income shall be measured annually and reported using a fair value approach |
an entity had a plantation forest that is likely to be harvested and sold in 30 years. the income shall be accounted for in which of the following? a. no income shall be reported annually until first harvest b. income shall be measured annually and reported using a fair value approach c. the eventual sale proceeds shall be estimated and recognized over the 30-year period d. the plantation forest shall be measured every 5 years. |
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c. cost less accumulated depreciation and impairment loss |
where the fair value of the biological asset cannot be determined reliably, the asset shall be measured at a. cost b. cost less accumulated depreciation c. cost less accumulated depreciation and impairment loss d. net realizable value |
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a. profit or loss for the period |
a gain or loss arising on the initial recognition from a change in the fair value biological assets shall be included in
a. profit or loss for the period b. other comprehensive income c. a separate revaluation reserve d. an appropriation reserve |
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b. PAS 2, Inventories |
when there is a long aging or maturation process after harvest, the accounting shall be dealth with by
a. PAS 41, Agriculture b. PAS 2, Inventories c. PAS 16, property, plant and equipment d. PAS 40, Investment Property |
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a. the fair value less cost of disposal at point of harvest |
when agricultural produce is harvested, the harvest shall be accounted for as inventory at a. the fair value less cost of disposal at point of harvest b. historical cost c. historical cost less accumulated impairment loss d. fair value |
