Question 1

Which of the following is NOT considered to be agricultural produce?

Accepted Answer

A)  timber 
B)  sugar 
C)  wool 
D)  milk 
A)  timber 
B)  sugar 
C)  wool 
D)  milk B

Question 2

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?

Accepted Answer

A)  the asset has physical form 
B)  the entity controls the asset as a result of past events 
C)  it is probable that future economic benefits associated with the asset will flow to the entity 
D)  the fair value or cost can be reliably measured 
A)  the asset has physical form 
B)  the entity controls the asset as a result of past events 
C)  it is probable that future economic benefits associated with the asset will flow to the entity 
D)  the fair value or cost can be reliably measured A

Question 3

Which of the following is NOT a cost to sell?

Accepted Answer

A)  commissions to brokers 
B)  transfer taxes and duties 
C)  levies by regulatory agencies 
D)  transport costs to get assets to a market 
A)  commissions to brokers 
B)  transfer taxes and duties 
C)  levies by regulatory agencies 
D)  transport costs to get assets to a market D

Question 4

RuralCo received a $100 000 grant from the government on 1 July 2013. One of the conditions attached to the grant was the Rural Co had to continue farming in the same location for the next 2 years, otherwise the grant would have to be retuned in full.
The entry to record the receipt of the grant is:

Accepted Answer

A)  DR Cash 100 000 CR Revenue 100 000 
B)  DR Cash 100 000 CR Revenue 50 000
CR Performance obligation 50 000 
C)  DR Cash 100 000 CR Performance obligation 100 000 
D)  No entry required as the grant is conditional and cannot be recognised until the conditions attached to the grant are met. 
A)  DR Cash 100 000 CR Revenue 100 000 
B)  DR Cash 100 000 CR Revenue 50 000
CR Performance obligation 50 000 
C)  DR Cash 100 000 CR Performance obligation 100 000 
D)  No entry required as the grant is conditional and cannot be recognised until the conditions attached to the grant are met.

Question 5

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

Accepted Answer

A)  DR Biological asset xx CR Profit & Loss xx 
B)  DR Agricultural produce xx CR Profit & Loss xx 
C)  DR Profit & Loss xx CR Biological asset xx 
D)  DR Profit & Loss xx CR Agricultural produce xx 
A)  DR Biological asset xx CR Profit & Loss xx 
B)  DR Agricultural produce xx CR Profit & Loss xx 
C)  DR Profit & Loss xx CR Biological asset xx 
D)  DR Profit & Loss xx CR Agricultural produce xx

Question 6

Which of the following statements is correct in relation to government grants?

Accepted Answer

A)  Government grants for biological assets measured at fair value are accounted for under IAS 41. 
B)  Government grants for biological assets measured at cost are accounted for under IAS 41. 
C)  Government grants for biological assets measured at fair value are accounted for under IAS 20. 
D)  Government grants for biological assets measured at cost are accounted for under IAS 18. 
A)  Government grants for biological assets measured at fair value are accounted for under IAS 41. 
B)  Government grants for biological assets measured at cost are accounted for under IAS 41. 
C)  Government grants for biological assets measured at fair value are accounted for under IAS 20. 
D)  Government grants for biological assets measured at cost are accounted for under IAS 18.

Question 7

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?

Accepted Answer

A)  the specific exclusion of assets related to agricultural activity from other standards 
B)  agriculture was considered to be an emerging industry at that time 
C)  accounting guidelines for agricultural activity previously developed by national standard setters had been piecemeal 
D)  the nature of agricultural activity had created uncertainty or conflicts when applying traditional accounting models 
A)  the specific exclusion of assets related to agricultural activity from other standards 
B)  agriculture was considered to be an emerging industry at that time 
C)  accounting guidelines for agricultural activity previously developed by national standard setters had been piecemeal 
D)  the nature of agricultural activity had created uncertainty or conflicts when applying traditional accounting models

Question 8

IAS 41 considers that there are three common features to agricultural diversity. Which of the following is NOT one of those features?

Accepted Answer

A)  measurement of change 
B)  management of change 
C)  capability to change 
D)  change transformation 
A)  measurement of change 
B)  management of change 
C)  capability to change 
D)  change transformation

Question 9

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

Accepted Answer

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

Question 10

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

Accepted Answer

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

Question 11

Which of the following is an agricultural product?

Accepted Answer

A)  tea 
B)  milk 
C)  coffee 
D)  fruit juice 
A)  tea 
B)  milk 
C)  coffee 
D)  fruit juice

Question 12

When determining the fair value of biological assets and there is no market price for that asset in its present condition IAS 41 requires that:

Accepted Answer

A)  the entity uses the present value of expected net cash flows from the asset discounted at a current market-determined pre-tax rate. 
B)  the entity measure the asset at cost. 
C)  the entity uses the contract prices for recent sales of similar assets adjusted for the effects of biological transformation. 
D)  the entity uses sector benchmarks. 
A)  the entity uses the present value of expected net cash flows from the asset discounted at a current market-determined pre-tax rate. 
B)  the entity measure the asset at cost. 
C)  the entity uses the contract prices for recent sales of similar assets adjusted for the effects of biological transformation. 
D)  the entity uses sector benchmarks.

Question 13

Agricultural produce is defined in IAS 41 as:

Accepted Answer

A)  a living animal or plant 
B)  a living product capable of biological transformation 
C)  the harvested product of the entity's biological assets 
D)  the detachment of produce from a biological asset or cessation of a biological asset's life processes 
A)  a living animal or plant 
B)  a living product capable of biological transformation 
C)  the harvested product of the entity's biological assets 
D)  the detachment of produce from a biological asset or cessation of a biological asset's life processes

Question 14

Which of the following is NOT considered an agricultural activity?

Accepted Answer

A)  oyster farming 
B)  ocean fishing 
C)  pearl farming 
D)  fish farming 
A)  oyster farming 
B)  ocean fishing 
C)  pearl farming 
D)  fish farming

Question 15

IAS 41 requires disclosure of which of the following relating to government grants?

Accepted Answer

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

Question 16

Which of the following meets the definition of agricultural produce?

Accepted Answer

A)  Dairy cattle 
B)  Milk 
C)  Cheese 
D)  Yoghurt 
A)  Dairy cattle 
B)  Milk 
C)  Cheese 
D)  Yoghurt

Question 17

Which of the following require disclosures to be made under IAS 17 and IAS 41?

Accepted Answer

A)  operating and financing leases by lessors and lessees 
B)  finance leases by lessors and lessees only 
C)  operating and finance leases by lessees only 
D)  operating and finance leases by lessors only 
A)  operating and financing leases by lessors and lessees 
B)  finance leases by lessors and lessees only 
C)  operating and finance leases by lessees only 
D)  operating and finance leases by lessors only

Question 18

Which standard was issued in 2011 that amended IAS 41?

Accepted Answer

A)  IFRS 7 
B)  IAS 1 
C)  IAS 18 
D)  IFRS 13 
A)  IFRS 7 
B)  IAS 1 
C)  IAS 18 
D)  IFRS 13

Question 19

IAS 41 requires that biological assets be measured as follows:

Accepted Answer

A)  on initial recognition and at the end of each reporting period at fair value less costs to sell 
B)  on initial recognition and at the end of each reporting period at its fair value less costs to sell, except where the fair value cannot be measured reliably 
C)  at fair value-less estimated costs to sell at the point of harvest 
D)  at fair value less costs to sell at the point of harvest 
A)  on initial recognition and at the end of each reporting period at fair value less costs to sell 
B)  on initial recognition and at the end of each reporting period at its fair value less costs to sell, except where the fair value cannot be measured reliably 
C)  at fair value-less estimated costs to sell at the point of harvest 
D)  at fair value less costs to sell at the point of harvest

Question 20

According to IFRS 13 Fair Value Measurement, the market used to determine fair value should be:

Accepted Answer

A)  the principal market, or, in the absence of a principal market, the relevant market 
B)  the most advantageous market 
C)  the relevant market 
D)  either the principal market, or, in the absence of a principal market, the most advantageous market 
A)  the principal market, or, in the absence of a principal market, the relevant market 
B)  the most advantageous market 
C)  the relevant market 
D)  either the principal market, or, in the absence of a principal market, the most advantageous market

Exam 17: Agriculture

Which of the following is NOT considered to be agricultural produce?

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?

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

Which of the following statements is correct in relation to government grants?

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?

IAS 41 considers that there are three common features to agricultural diversity. Which of the following is NOT one of those features?

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 an agricultural product?

When determining the fair value of biological assets and there is no market price for that asset in its present condition IAS 41 requires that:

Agricultural produce is defined in IAS 41 as:

Which of the following is NOT considered an agricultural activity?

IAS 41 requires disclosure of which of the following relating to government grants?

Which of the following meets the definition of agricultural produce?

Which of the following require disclosures to be made under IAS 17 and IAS 41?

Which standard was issued in 2011 that amended IAS 41?

IAS 41 requires that biological assets be measured as follows:

According to IFRS 13 Fair Value Measurement, the market used to determine fair value should be:

The Conceptual Framework of the Iasb

Shareholders Equity: Share Capital and Reserves

Fair Value Measurement

Revenue

Provisions, Contingent Liabilities and Contingent Assets

Income Taxes

Financial Instruments

Share-Based Payments

Inventories

Employee Benefits

Property, Plant and Equipment

Leases

Intangible Assets

Business Combinations

Impairment of Assets

Accounting for Mineral Resources

Financial Statement Presentation

Statement of Cash Flows

Earnings Per Share

Operating Segments

Operating Segments

Consolidation: Controlled Entities

Consolidation: Wholly Owned Subsidiaries

Consolidation: Intragroup Transactions

Consolidation: Non-Controlling Interest

Consolidation: Other Issues

Translation of the Financial Statements of Foreign Entities

Associates and Joint Ventures

Joint Arrangements

Filters