- Examrace on 05-Aug-2020. The first room is on fire second guns with the … If I get you correctly only farm produce and processed animals are treated as inventories under IAS 2 because they are non living. I just wanna need your advice on this question Keen to learn hw should they account for the harvest. In 2017, 80% of the flowers are sold, immediately after they are picked, for a sale price of $150000. Oladipupo from Nigeria, Thanks Silvia, your articles bring simplicity in understanding financial reporting. A comprehensive database of more than 22 genius quizzes online, test your knowledge with genius quiz questions. cutting the hedges = expense, but planting new plants and making area nicer = capitalize. I am eagerly looking forward to your next article. IFRS 05 or IAS 41 ? And more over,this less examined in most Financial reporting questions.This is the world of Agriculture so students and accountants should actually gain most of the knowledge on IAS 41 and know how it can be related to IAS 16 and 2. Actually it is very important for agricultural activities and agricultural produce. This is a relatively new thing in both IAS 41 and IAS 16 adopted in 2014. 4 UPSC conducted the UPSC Civil Services IAS Prelims CSAT in the evening session on 3rd June 2018. Looking foward to your next article, have a client who is involve in fishing. During the reporting period Is it allowed in IAS 41 and If we moved is it change in accounting policy or accounting estimate. So here, impairment is not suitable (with impairment you still expect some future economic benefits from the asset, but here – no benefits from dead tree). Recent questions and answers in IAS 41 - Agriculture. Therefore, a few problems arise when it comes to accounting for and reporting the results of agricultural businesses. Thanks for sharing your knowledge on this topic. If cattle is used to produce milk, then this cattle is a biological asset under IAS 41. The harvested agricultural produce from the biological assets are measured at fair value less cost to sell and accounted under inventories (LKAS 02). Reveal answer. UPSC IAS Interview Questions And Answers: IAS Interview is the last and final stage to crack. Here we collect some best questions from various places, and I hope these psc questions and answers definitely help you in your exams. This article is very helpful, concise and explicit in gaining further understanding. IAS 41 requires agricultural produces to be measured at fair value less cost to sale at the point of Harvest. 4 1.10 What is biological transformation? Excellent…. Measuring that dog Under IAS 16 could also be a challenge. S. Thank you very much, Silvia, this is my first time of reading IAS 41 and I’m glad your explanation is simple enough to understand. Assuming we have a dog for guard our properties(We need to account under IAS 16).After few years we decided to sell the dog.When i take this decision,which standard do i use to accounting treatment ? previous reporting period) was $95000 and at 30th June 2017, $115000. Reveal answer. But, you launched the idea. Note: depreciation cannot be calculated in this question as I wonder is this treatment correct? Dear Ashraf, well, it’s flattering and I thank you for that, but I think that true “queens and kings” of IFRS are sitting there in the IASB creating the standards . Dear Silva, I am having difficulty to differentiate between a Biological Asset particularly a plant under IAS 41 and a Biological Asset, a Bearer plant under IAS 16. Thank you, Dear Sylvia, Good morning from Greece, Silvia, could you please clarify: Working animals – Working dogs and horses on farms I could present both elements in my financial statements. Dr Inventory Enjoy ! May 6, 2019; IAS Main 2018 Public Administration Paper I These is no option to value at cost since the 3rd exemption is not relevant. Silva, Really you are amazing. Thank you a lot. So for this here we have provided UPSC IAS Interview Questions And Answers on below page. The fair value less the estimated point of sale costs of the flower trees at 30th June 2016 ( the end of the Chapter 19. Inventory (IAS 2) Chapter 10. Please check your inbox to confirm your subscription. When we give discount to customers, it is considered above the calculation of ‘Net Revenue’… What if, instead of selling at discount price, we could give them goods / gifts worth of that discount amount ? A group of biological assets is an aggregation of similar living animals or plants. Based on my understanding of this article, our horses should be classified as follows: * race horses – a PPE and should be accounted at cost and to be depreciated (IAS 16) Eyad, Well, I would need someone to help me moderate the forum and respond the questions, because I just can’t do it myself, it’s a huge workload S. Folks Now he is going to spend money on them and these expenses are periodic expenses, accordingly its better to sell the puppies early to avoid extra expense that will reduce your profits that is generated from the birth of Puppies ( the journal above). By definition, living animals and plants are born, grow and die. i was only aware of 1 reason why we measure biological asset at cost. A big thank you Sylvia. under licence during the term and subject to the conditions contained therein. Please I need clarification. It talks about the subsequent expenditure and in fact, the standard IAS 41 does not prescribe how to deal with it, meaning that you can actually choose what to do. Hello Silvia,I must say you are an awesome teacher.The simplicity in your explanations is really amazing.And I appreciate the way you explained the disparity between a biological asset and an agricultural produce.I definitely will get your IFRS kits anytime soon. Are you going to raise them into adult dogs and then use them as guard dogs? I don’t however understand the basis of moving only bearer plants from IAS 41. there are also bearer animals and I believe that in most cases it may be impracticable to fair value them(my opinion though). Or expensed outright? Introductory video on IFRS, you must prepare well predicting all the are! Right below this video and let me call you the answer 114 or 116! Requirements for taking some of my next articles: online Workshops – GAAP! For 3 years period @ 12 % pa. 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