Exam 20: Agriculture

Rural Co. received a $100 000 grant from the government on 1 July 2016. One of the conditions attached to the grant was the Rural Co had to continue farming in the same location for the following two years, otherwise the grant would have to be retuned in full. The entry to record the receipt of the grant is:

Which of the following is an agricultural product?

IAS 41 applies to the accounting for the following when they relate to agricultural activity: I agricultural produce II biological assets III land related to agricultural activity IV government grants

Which of the following is NOT one of the recognition criteria contained within IAS 41 in relation to recognition of a biological asset or agricultural produce as an asset?

Which of the following is NOT a cost to sell?

IAS 41 requires disclosure of which of the following? I aggregate gain or loss on initial recognition of biological assets II fair value of agricultural produce harvested during the period, at point of harvest III fair value changes attributable to physical changes IV fair value changes attributable to price changes

Which of the following statements is NOT correct?

Which of the following is NOT a reason as to why the IASC felt that agriculture was an industry that needed its own industry specific standard?

The entry required when an animal is born on a pig farm is:

Use the following information to answer questions Cow Co. is a company that farms dairy cattle. Cow Co. owns the farmland on which the cattle are located, having purchased it for £1.5 million in 2013. The land is measured at cost under IAS 16. Details of cattle at 30 June 2015 were as follows: Cows Heifers Number 900 200 Fair value (less estimated costs to sell) £800 £320 During the year ended 30 June 2016 the following occurred: $\bullet$ 200 new cows were purchased at £810 each $\bullet$ 50 heifers matured into cows $\bullet$ 5 heifers died $\bullet$ 100 cows were sold for £830 each $\bullet$ The price change between a heifer and a cow at the time of maturity during the year was estimated to be £500 The following is relevant at 30 June 2016: $\bullet$ The land has been valued at £5.6 million $\bullet$ Fair value less estimated costs to sell are as follows (Cow Co. has determined that these are the appropriate fair values to use for the purposes of transfers and deaths of heifers): o Cows - £850 /head o Heifers - £350/head -The fair value of cows as at 30 June 2016 is: