Exam 35: Agriculture

Rural Co 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:

Agricultural produce is defined in AASB 141/IAS 41 as:

Increases in fair value over cost in relation to land used for agricultural purposes is recognised in equity when the land is:

AASB 141/IAS 41 requires that biological assets be measured:

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

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 fair value of cows as at 30 June 2014 is:

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