Question 1

AASB 141 does not require gains to be broken down into volume changes and price changes as recommended by Roberts,Staunton and Hagen.

Accepted Answer

A) True 
 B)False

Question 2

In accordance with AASB 141 a gain or loss may arise from:

Accepted Answer

A)  subsequent measurement dates of a biological asset. 
B)  initial recognition of an agricultural produce. 
C)  initial recognition of a biological asset. 
D)  all of the given answers. 
A)  subsequent measurement dates of a biological asset. 
B)  initial recognition of an agricultural produce. 
C)  initial recognition of a biological asset. 
D)  all of the given answers.

Question 3

Which of the following are within the scope of AASB 141 Agriculture?

Accepted Answer

A)  land related to agricultural activity 
B)  research and development costs of a biological asset 
C)  warehouse used to sheer wool from sheep 
D)  None of the given answers are within the scope of AASB 141. 
A)  land related to agricultural activity 
B)  research and development costs of a biological asset 
C)  warehouse used to sheer wool from sheep 
D)  None of the given answers are within the scope of AASB 141.

Question 4

A recognition criterion for assets is that the entity reporting them should have control (but not necessarily ownership)of them.Heritage assets often have features that make the establishment of control difficult.These features include:

Accepted Answer

A)  The interrelationships between legislation and regulations governing heritage assets may make it difficult to establish which government agency has ultimate control over the asset. 
B)  It can be difficult to control access to a range of heritage assets. 
C)  The government agency with responsibility for the heritage asset may be restricted in what it may do with the asset. 
D)  all of the given answers. 
A)  The interrelationships between legislation and regulations governing heritage assets may make it difficult to establish which government agency has ultimate control over the asset. 
B)  It can be difficult to control access to a range of heritage assets. 
C)  The government agency with responsibility for the heritage asset may be restricted in what it may do with the asset. 
D)  all of the given answers.

Question 5

Biological assets have a natural capacity to grow and/or procreate that directly affects the value of the asset.

Accepted Answer

A) True 
 B)False

Question 6

Heritage assets may be defined as intangible assets that a community intends preserving because of cultural,historic or spiritual associations.

Accepted Answer

A) True 
 B)False

Question 7

The release of AASB 1037 Self-generating and Regenerating Assets a predecessor of AASB 141 Agriculture was controversial.Discuss the criticisms in the accounting treatment for biological assets that continue to trouble AASB 141.

Accepted Answer

The release of AASB 1037 Self-generating

Question 8

A broader issue raised by the measurement of heritage assets in the financial statements of government entities is the appropriateness of the AASB Framework Project for not-for-profit entities.Among other things,writers have argued that:

Accepted Answer

A)  It is not clear that the social objectives of not-for-profit enterprises are compatible with the approach to accountability implied in the qualitative disclosures the Conceptual Framework Project gives rise to. 
B)  The heritage 'assets' held by not-for-profit entities should be de-accessioned and valued at cost if they are to fit within the definitions of assets in the Conceptual Framework. Where this is not feasible they fall outside the Conceptual Framework's objectives. 
C)  Accrual accounting concepts form the basis of the Conceptual Framework Project. These concepts are fundamentally based on the historical-cost approach to accounting and are therefore flawed in relation to heritage assets, which clearly should be valued using a market-based measure. 
D)  It is not clear that 'assets' held by not-for-profit entities should be defined in terms of their probability of generating future economic benefits. 
A)  It is not clear that the social objectives of not-for-profit enterprises are compatible with the approach to accountability implied in the qualitative disclosures the Conceptual Framework Project gives rise to. 
B)  The heritage 'assets' held by not-for-profit entities should be de-accessioned and valued at cost if they are to fit within the definitions of assets in the Conceptual Framework. Where this is not feasible they fall outside the Conceptual Framework's objectives. 
C)  Accrual accounting concepts form the basis of the Conceptual Framework Project. These concepts are fundamentally based on the historical-cost approach to accounting and are therefore flawed in relation to heritage assets, which clearly should be valued using a market-based measure. 
D)  It is not clear that 'assets' held by not-for-profit entities should be defined in terms of their probability of generating future economic benefits.

Question 9

Examples of biological assets include:

Accepted Answer

A)  trees in a recreational park. 
B)  aquaculture and fishery holdings. 
C)  telecommunications and computer software. 
D)  preserved fossilised remains. 
A)  trees in a recreational park. 
B)  aquaculture and fishery holdings. 
C)  telecommunications and computer software. 
D)  preserved fossilised remains.

Question 10

Research has indicated that,in general,large arts institutions in the English-speaking world value their collections as assets and report them in their financial statements.

Accepted Answer

A) True 
 B)False

Question 11

Agricultural produce is no longer re-measured to fair value because it is accounted for using the lower of cost or recoverable amount.

Accepted Answer

A) True 
 B)False

Question 12

The requirements of AAS 29 are out of line with one of the views outlined in the International Accord on the Value of Natural Science Collections.

Accepted Answer

A) True 
 B)False

Question 13

Prior to the effective date for implementation of AASB 1037 (30 June 2001)the difficulties in classifying self-generating and regenerating assets caused the use of a variety of practices among reporting entities.Those classifications for self-generating and regenerating assets include:

Accepted Answer

A)  inventory. 
B)  property plant and equipment. 
C)  non-current inventory. 
D)  all of the given answers. 
A)  inventory. 
B)  property plant and equipment. 
C)  non-current inventory. 
D)  all of the given answers.

Question 14

A concern associated with the capitalisation of heritage assets is that it will lead to financial statement users believing that the assets could be readily sold when this is not the case.

Accepted Answer

A) True 
 B)False

Question 15

Concept of control is problematic for heritage assets but not so for biological assets.

Accepted Answer

A) True 
 B)False

Question 16

'Wine' is classified as a processed product of the agricultural produce 'grapes' and is still within the scope of AASB 141 Agriculture.

Accepted Answer

A) True 
 B)False

Exam 9: Accounting for Heritage Assets and Biological Assets

AASB 141 does not require gains to be broken down into volume changes and price changes as recommended by Roberts,Staunton and Hagen.

In accordance with AASB 141 a gain or loss may arise from:

Which of the following are within the scope of AASB 141 Agriculture?

A recognition criterion for assets is that the entity reporting them should have control (but not necessarily ownership)of them.Heritage assets often have features that make the establishment of control difficult.These features include:

Biological assets have a natural capacity to grow and/or procreate that directly affects the value of the asset.

Heritage assets may be defined as intangible assets that a community intends preserving because of cultural,historic or spiritual associations.

The release of AASB 1037 Self-generating and Regenerating Assets a predecessor of AASB 141 Agriculture was controversial.Discuss the criticisms in the accounting treatment for biological assets that continue to trouble AASB 141.

A broader issue raised by the measurement of heritage assets in the financial statements of government entities is the appropriateness of the AASB Framework Project for not-for-profit entities.Among other things,writers have argued that:

Examples of biological assets include:

Research has indicated that,in general,large arts institutions in the English-speaking world value their collections as assets and report them in their financial statements.

Agricultural produce is no longer re-measured to fair value because it is accounted for using the lower of cost or recoverable amount.

The requirements of AAS 29 are out of line with one of the views outlined in the International Accord on the Value of Natural Science Collections.

Prior to the effective date for implementation of AASB 1037 (30 June 2001)the difficulties in classifying self-generating and regenerating assets caused the use of a variety of practices among reporting entities.Those classifications for self-generating and regenerating assets include:

A concern associated with the capitalisation of heritage assets is that it will lead to financial statement users believing that the assets could be readily sold when this is not the case.

Concept of control is problematic for heritage assets but not so for biological assets.

'Wine' is classified as a processed product of the agricultural produce 'grapes' and is still within the scope of AASB 141 Agriculture.

An Overview of the Australian External Reporting Environment

The Conceptual Framework of Accounting and Its Relevance to Financial Reporting

Theories of Accounting

An Overview of Accounting for Assets

Depreciation of Property, plant and Equipment

Revaluations and Impairment Testing of Non-Current Assets

Inventory

Accounting for Intangibles

An Overview of Accounting for Liabilities

Accounting for Leases

Accounting for Employee Benefits

Share Capital and Reserves

Accounting for Financial Instruments

Revenue Recognition Issues

The Statement of Comprehensive Income and Statement of Changes in Equity

Accounting for Share-Based Payments

Accounting for Income Taxes

The Statement of Cash Flows

Accounting for the Extractive Industries

Accounting for General Insurance Contracts

Accounting for Superannuation Plans

Events Occurring After the End of the Reporting Period

Segment Reporting

Related Party Disclosures

Earnings Per Share

Accounting for Group Structures

Further Consolidation Issues I: Accounting for Intragroup Transactions

Further Consolidation Issues II: Accounting for Non-Controlling Interests

Further Consolidation Issues IV: Accounting for Changes in the Degree of Ownership of a Subsidiary

Accounting for Equity Investments,including Investments in Associates and Joint Arrangements

Accounting for Foreign Currency Transactions

Translating the Financial Statements of Foreign Operations

Accounting for Corporate Social Responsibility

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