Question 1

Which of the following would be disclosed in the statement of financial position as a biological asset under AASB 141/IAS 41?

Accepted Answer

A)  Pigs. 
B)  Picked fruit. 
C)  Wine. 
D)  Grapes. 
A)  Pigs. 
B)  Picked fruit. 
C)  Wine. 
D)  Grapes.

Question 2

Whiting Limited operates a fish farm. AASB 141/IAS 41 requires live immature fish to be valued at:

Accepted Answer

A)  either cost or fair value less estimated costs to sell. 
B)  cost due to the absence of an active market for such fish. 
C)  the fair value less costs to sell based on prices of slaughtered immature fish. 
D)  fair value determined by applying a discount factor to the fair value of live mature fish. 
A)  either cost or fair value less estimated costs to sell. 
B)  cost due to the absence of an active market for such fish. 
C)  the fair value less costs to sell based on prices of slaughtered immature fish. 
D)  fair value determined by applying a discount factor to the fair value of live mature fish.

Question 3

Which of the following are reasons why the IASC felt that agriculture was an industry that needed its own industry specific standard?
I. Agriculture was considered to be an emerging industry at that time.
II. The specific exclusion of assets related to agricultural activity from other standards.
III. The nature of agricultural activity had created uncertainty or conflicts when applying traditional accounting models.
IV. Accounting guidelines for agricultural activity previously developed by national standard setters had been piecemeal.

Accepted Answer

A)  I, II and III 
B)  I, III and IV 
C)  II, III and IV 
D)  III and IV only 
A)  I, II and III 
B)  I, III and IV 
C)  II, III and IV 
D)  III and IV only

Question 4

Which of the following is a required disclosure under AASB 141/IAS 41 in relation to government grants?

Accepted Answer

A)  Unfulfilled conditions and other contingencies attached to the grant and details of grants applied for but not yet granted. 
B)  The nature and extent of grants recognised, unfulfilled conditions and other contingencies attached to the grant and significant decreases expected in the level of government grants. 
C)  The nature and extent of grants recognised, unfulfilled conditions attached to the grant and significant increases expected in the level of government grants. 
D)  The nature and extent of grants recognised, unfulfilled conditions and other contingencies attached to the grant and details of grants applied for but not yet granted. 
A)  Unfulfilled conditions and other contingencies attached to the grant and details of grants applied for but not yet granted. 
B)  The nature and extent of grants recognised, unfulfilled conditions and other contingencies attached to the grant and significant decreases expected in the level of government grants. 
C)  The nature and extent of grants recognised, unfulfilled conditions attached to the grant and significant increases expected in the level of government grants. 
D)  The nature and extent of grants recognised, unfulfilled conditions and other contingencies attached to the grant and details of grants applied for but not yet granted.

Question 5

At 30 June 2021, the fair value of Green Valley's vineyard is $2.25 million. At 30 June 2022, the following information is available: Fair value of vines prior to harvest at 31 March 2022 $2 400 000
Fair value of grapes harvested at 31 March 2022 $800 000
Estimated costs to sell - grapes $30 000
Estimated costs to sell - vines $40 000
There have been no changes in fair values between 1 April and 30 June 2022.
The entry to recognise the grapes at the point of harvest is:

Accepted Answer

A)  DR Agricultural produce - grapes 830 000 CR Profit and loss 830 000 
B)  DR Agricultural produce - grapes 770 000 CR Profit and loss 770 000 
C)  DR Agricultural produce - grapes 800 000 CR Biological asset - vines 800 000 
D)  DR Agricultural produce - grapes 830 000 CR Cash 30 000
CR Biological asset - vines 800 000 
A)  DR Agricultural produce - grapes 830 000 CR Profit and loss 830 000 
B)  DR Agricultural produce - grapes 770 000 CR Profit and loss 770 000 
C)  DR Agricultural produce - grapes 800 000 CR Biological asset - vines 800 000 
D)  DR Agricultural produce - grapes 830 000 CR Cash 30 000
CR Biological asset - vines 800 000

Question 6

Jersey Co is a company that farms dairy cattle. Jersey Co owns the farmland on which the cattle are located, having purchased it for $3.5 million in 2019. The land is measured at cost under AASB 116/IAS 16. Details of cattle at 30 June 2021 were as follows:
$\begin{array}{ll}&\text { Cows }&\text { Heifers }\
\text { Number } & 1400&200 \
\text { Fair value (less estimated costs to sell) per head } & \$ 590&\$210
\end{array}$ During the year ended 30 June 2022 the following occurred:
400 new cows were purchased at $610 each
76 heifers matured into cows
10 heifers died
600 cows were sold for $650 each
The price change between a heifer and a cow at the time of maturity during the year was estimated to be $400. The following is relevant at 30 June 2022:
The land has been valued at $5 million. Jersey Co has determined that the following are the appropriate values to use for the purposes of transfers and deaths of heifers. Fair value less estimated costs to sell:
Cows: $720 / head
Heifers: $300 / head
The fair value of cows as at 30 June 2022 is:

Accepted Answer

A)  $433 840 
B)  $430 440 
C)  $413 000 
D)  $408 000 
A)  $433 840 
B)  $430 440 
C)  $413 000 
D)  $408 000

Question 7

AASB 141/IAS 41 applies to accounting for which of the following when they relate to agricultural activity?
I. Biological assets.
II. Government grants.
III. Agricultural produce.
IV. Land related to agricultural activity.

Accepted Answer

A)  I, II and IV. 
B)  I, II and III. 
C)  II, III and IV. 
D)  I, III and IV. 
A)  I, II and IV. 
B)  I, II and III. 
C)  II, III and IV. 
D)  I, III and IV.

Question 8

AASB 141/IAS 41 considers that there are three common features to agricultural diversity. These three features are:
I. Capability to change.
II. Change transformation.
III. Management of change.
IV. Measurement of change.

Accepted Answer

A)  I, II and III 
B)  I, II and IV 
C)  I, III and IV 
D)  II, III and IV 
A)  I, II and III 
B)  I, II and IV 
C)  I, III and IV 
D)  II, III and IV

Question 9

AASB 141/IAS 41 requires that biological assets be measured on initial recognition and at the end of each reporting period:

Accepted Answer

A)  at fair value less costs to sell. 
B)  at fair value less costs to sell at the point of harvest. 
C)  at fair value less estimated costs to sell at the point of harvest. 
D)  at fair value less costs to sell, except where the fair value cannot be measured reliably. 
A)  at fair value less costs to sell. 
B)  at fair value less costs to sell at the point of harvest. 
C)  at fair value less estimated costs to sell at the point of harvest. 
D)  at fair value less costs to sell, except where the fair value cannot be measured reliably.

Exam 35: Agriculture

Which of the following would be disclosed in the statement of financial position as a biological asset under AASB 141/IAS 41?

Whiting Limited operates a fish farm. AASB 141/IAS 41 requires live immature fish to be valued at:

Which of the following is a required disclosure under AASB 141/IAS 41 in relation to government grants?

AASB 141/IAS 41 applies to accounting for which of the following when they relate to agricultural activity? I. Biological assets. II. Government grants. III. Agricultural produce. IV. Land related to agricultural activity.

AASB 141/IAS 41 considers that there are three common features to agricultural diversity. These three features are: I. Capability to change. II. Change transformation. III. Management of change. IV. Measurement of change.

AASB 141/IAS 41 requires that biological assets be measured on initial recognition and at the end of each reporting period:

Accounting Regulation and the Conceptual Framework

Application of Accounting Theory

Fair Value Measurement

Inventories

Property, Plant and Equipment

Intangible Assets

Impairment of Assets

Provisions, Contingent Liabilities and Contingent Assets

Employee Benefits

Leases

Financial Instruments

Income Taxes

Share Capital and Reserves

Share Based Payment

Revenue

Presentation of Financial Statements

Statement of Cash Flows

Accounting Policies and Other Disclosures

Earnings Per Share

Operating Segments

Related Party Disclosures

Sustainability and Corporate Social Responsibility Recording

Foreign Currency Transactions and Forward Exchange Contracts

Translation of Foreign Currency Financial Statements

Business Combinations

Consolidation: Controlled Entities

Consolidation: Wholly Owned Entities

Consolidation: Intragroup Transactions

Consolidation: Non-Controlling Interest

Consolidation: Other Issues

Associates and Joint Ventures

Joint Arrangements

Insolvency and Liquidation

Accounting for Mineral Resources

Filters