Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
2. Which of the following is not one of the recognition criteria contained within PAS 41 in relation to
recognition of a biological asset or agricultural produce as an asset?
a. it is probable that future economic benefits associated with the asset will flow to the entity
b. the fair value or cost can be reliably measured
c. the asset has physical form
d. the entity controls the asset as a result of past events
3. These biological assets are not agricultural produce but, rather, are self-regenerating.
a. agricultural produce
b. consumable biological assets
c. bearer biological assets
d. biological assets
True or False
5. Any changes in the fair value less costs to sell of biological assets are included in other
comprehensive income.
Problem 1. Cow Co is a company that farms dairy cattle. Cow Co. owns the farmland on which the cattle
are located, having purchased it for P1.5 million in 2014. The land is measured at cost under PAS 16.
Details of cattle at 30 June 2016 were as follows:
Cows Heifers
Number 900 200
Fair Value P800 P320
During the year ended 30 June 2017 the following occurred:
Problem 2. 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 P500 per truck. Each truck can transport
approximately 100 cattle.
Number of mature cows held at 30 June 2017 5,000
Average litres of production per cow 6,000 liters
Lactation rate 50%
Price per litre 40 cents
9. The market value for each cow at 30 June 2017 is: 1,200
10. If the fair value of the cows on June 30, 2016 was P950, how much is the total gain on change in
fair value for the year: