Question 1

AASB 141/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. D

Question 2

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. B

Question 3

AASB 141/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. D

Question 4

AASB 141/IAS 41 applies to 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 5

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.

Question 6

Which of the following is NOT one of the recognition criteria contained within AASB 141/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.

Question 7

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 8

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

Accepted Answer

A)  Tea. 
B)  Milk. 
C)  Coffee. 
D)  Fruit juice. 
A)  Tea. 
B)  Milk. 
C)  Coffee. 
D)  Fruit juice.

Question 9

At 30 June 2013 the fair value of Wine Co's vineyard is $2.5 million. At 30 June 2014 the following information is available:
 
There have been no changes in fair values between 1 April and 30 June 2014.
At 30 June 2014 the vines will be recorded in Wine Co's financial statements at an amount of:

Accepted Answer

A)  $2 580 000. 
B)  $2 600 000. 
C)  $2 980 000. 
D)  $3 100 000. 
A)  $2 580 000. 
B)  $2 600 000. 
C)  $2 980 000. 
D)  $3 100 000.

Question 10

Which of the following statements is NOT correct?

Accepted Answer

A)  Management facilitates biological transformation. 
B)  Management is a key part of the definition of agricultural activity under AASB 141/IAS 41. 
C)  There is a link between management and control of a biological asset. 
D)  Management is a key part of the recognition criteria for biological assets and agricultural produce. 
A)  Management facilitates biological transformation. 
B)  Management is a key part of the definition of agricultural activity under AASB 141/IAS 41. 
C)  There is a link between management and control of a biological asset. 
D)  Management is a key part of the recognition criteria for biological assets and agricultural produce.

Question 11

Milko owns dairy cattle. The market value of the cattle is calculated by reference to the litres of milk able to be produced and the lactation rate of the cows. The cattle are regularly sold at auction. Costs incurred to transport the cattle to auction are $500 per truck. Each truck can transport approximately 100 cattle.
 
The market value for each cow at 30 June 2013 is:

Accepted Answer

A)  $1000. 
B)  $1195. 
C)  $1200. 
D)  $1205. 
A)  $1000. 
B)  $1195. 
C)  $1200. 
D)  $1205.

Question 12

It is common for companies applying AASB 141/IAS 41 to:

Accepted Answer

A)  attempt to 'bury' the fair value movements attributable to agricultural assets in 'other expenses'. 
B)  separately disclose the fair value movements attributable to agricultural assets in the statement of profit or loss and other comprehensive income or the notes. 
C)  disclose the fair value movements attributable to agricultural assets as part of 'abnormal' items. 
D)  remain silent in the financial statements about the fair value movements attributable to agricultural assets, but highlight such items in 'financial commentaries'. 
A)  attempt to 'bury' the fair value movements attributable to agricultural assets in 'other expenses'. 
B)  separately disclose the fair value movements attributable to agricultural assets in the statement of profit or loss and other comprehensive income or the notes. 
C)  disclose the fair value movements attributable to agricultural assets as part of 'abnormal' items. 
D)  remain silent in the financial statements about the fair value movements attributable to agricultural assets, but highlight such items in 'financial commentaries'.

Question 13

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 14

AASB 141/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 15

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 2011. The land is measured at cost under AASB 116/IAS 16.
Details of cattle at 30 June 2013 were as follows:
 
During the year ended 30 June 2014 the following occurred:
200 new cows were purchased at $810 each
50 heifers matured into cows
5 heifers died
100 cows were sold for $830 each
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 2014:
The land has been valued at $5.6 million
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):
Cows - $860 /head
Heifers - $340/head
The increase in fair value of livestock attributable to price change is:

Accepted Answer

A)  $77 000. 
B)  $76 000. 
C)  $25 000. 
D)  $6 000. 
A)  $77 000. 
B)  $76 000. 
C)  $25 000. 
D)  $6 000.

Question 16

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 AASB 141/IAS 41. 
B)  Government grants for biological assets measured at cost are accounted for under AASB 141/IAS 41. 
C)  Government grants for biological assets measured at fair value are accounted for under AASB 120/IAS 20. 
D)  Government grants for biological assets measured at cost are accounted for under AASB 118/IAS 18. 
A)  Government grants for biological assets measured at fair value are accounted for under AASB 141/IAS 41. 
B)  Government grants for biological assets measured at cost are accounted for under AASB 141/IAS 41. 
C)  Government grants for biological assets measured at fair value are accounted for under AASB 120/IAS 20. 
D)  Government grants for biological assets measured at cost are accounted for under AASB 118/IAS 18.

Question 17

Which standard was issued in 2011 that amended AASB 141/IAS 41?

Accepted Answer

A)  AASB 7/IAS 7 
B)  AASB 101/IAS 1 
C)  AASB 118/IAS 18 
D)  AASB 13/IAS 13 
A)  AASB 7/IAS 7 
B)  AASB 101/IAS 1 
C)  AASB 118/IAS 18 
D)  AASB 13/IAS 13

Question 18

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)  Vines. 
B)  Picked fruit. 
C)  Cotton. 
D)  Timber. 
A)  Vines. 
B)  Picked fruit. 
C)  Cotton. 
D)  Timber.

Question 19

When determining the fair value of biological assets and there is no market price for that asset in its present condition AASB 141/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 20

Which of the following require disclosures to be made under AASB 117/IAS 17 and AASB 141/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.

Exam 35: Agriculture

AASB 141/IAS 41 considers that there are three common features to agricultural diversity. Which of the following is NOT one of those features?

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?

AASB 141/IAS 41 requires disclosure of which of the following relating to government grants?

AASB 141/IAS 41 applies to 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 a cost to sell?

Which of the following is NOT one of the recognition criteria contained within AASB 141/IAS 41 in relation to recognition of a biological asset or agricultural produce as an asset?

Which of the following is NOT considered an agricultural activity?

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

At 30 June 2013 the fair value of Wine Co's vineyard is $2.5 million. At 30 June 2014 the following information is available: There have been no changes in fair values between 1 April and 30 June 2014. At 30 June 2014 the vines will be recorded in Wine Co's financial statements at an amount of:

Which of the following statements is NOT correct?

It is common for companies applying AASB 141/IAS 41 to:

Which of the following meets the definition of agricultural produce?

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

Which standard was issued in 2011 that amended AASB 141/IAS 41?

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

When determining the fair value of biological assets and there is no market price for that asset in its present condition AASB 141/IAS 41 requires that:

Which of the following require disclosures to be made under AASB 117/IAS 17 and AASB 141/IAS 41?

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

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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 Reporting

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

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