ias 41 questions and answers

Hi Neneyo, no, sows are not bearer plants, because they are not plants – they are animals. S. No doubt about your article. Dear Sylvia, Hi Dasun, OK, to be very prudent – IFRS 5, but I doubt that selling the dog would need some formal decision and actively looking for a customer, so just treat it as disposal under IAS 16. Dear Silvia, If it is still on the palm tree, then you would show the palm tree only. The article is nicely explained. Reveal answer. Infoedge Interview Aptitude Problem. The reason is that although most of you do NOT deal with agriculture, it is still one of the most important industries in the world. This article is very helpful, concise and explicit in gaining further understanding. E.g. When the fair value cannot be measurable, you can measure the asset at its cost less accumulated depreciation. Having that, we appreciate your tremendous work always which is freely available. By definition, living animals and plants are born, grow and die. Thanks for sharing your knowledge on this topic. Or expensed outright? Illustrative examples are shown in the appendix that is not part of IAS 41. Hello, John, I’ll write up more about the measurement of biological assets in some of my future articles. When I first go through your introductory video on IFRS, you motivated everyone to believe that IFRS are not that complex. Dear Silvia, Well, by no means they are investment property – IAS 40 limits its scope to buildings, lands and parts of it only, not animals. IAS is the best career option for young people. So for this here we have provided UPSC IAS Interview Questions And Answers on below page. One of our pigs littered 7 piglets yesterday but 2 died, how do we account for this. Hi Deme, I am from Ethiopia and working in a beverage industry, specifically winery company. English is my second language and if you are careful listener, you can hear it Thank you in advance! Question 3d - June 2016 Sample. At the subsequent measurement of these inventories, the cost of the agricultural produce should be fair value less cost to sell if i am not mistaken i will appreciate your quick respond. Please I need clarification. A comprehensive database of more than 22 genius quizzes online, test your knowledge with genius quiz questions. S. Hi Silvia, thanks for the nice article. We haven’t even touched other things, like how to set the fair value of biological assets and harvested produce, or example of accounting for agricultural activity from the beginning to the end. In this article, I outlined just a few critical questions related to the correct reporting of agricultural activities. Am very happy this IAS 41 on Agriculture. Oh, yes, I think I was right. As promised, I will write something in the future with examples. 3 1.6 Is ocean fishing agricultural activity? Looking foward to your next article, have a client who is involve in fishing. Top bizarre IAS Interview Questions Asked by UPSC and their Answer IAS Interview is the most critical part of the IAS Exam process. Chartered Education IFRS MCQs have more than 1,100 questions like these covering all subjects. That is a very interesting question. However we have neither primary nor secondary market for Grape. My company started producing strawberries in a greenhouse, we keep most of the plant more than a year or two and its almost impossible to control mother plant quantity and replacement them with new runner plants. UPSC conducted the UPSC Civil Services IAS Prelims CSAT in the evening session on 3rd June 2018. Acowtancy. Or this needs to considered as Cost of Sales, which is below the ‘Net Revenue’ calculation. Thank you Silvia for your article on IAS 41. Hi Silvia It is worth to mention that the UPSC prepares the merit of the aspirants for … It is so important and so different from other industries that it has its own standard – IAS 41 Agriculture. So, you capitalize all the costs and then you depreciate the plant. PART I Section 1 Paper No: CA11 Financial Accounting Past Papers CA12 Business Law Past Papers CA13 Entrepreneurship and Communication Past Papers. I can’t thank you enough for this outstanding work. If the agricultural produce is still attached to the bearer plant (e.g. Chartered Education IFRS MCQs have more than 1,100 questions like these covering all subjects. I just wanna need your advice on this question 42. The company buys materials, gives them to the other party which handles the production, and buys the agricultural produce back at the price the company can determine with great extent. Thanks for the quick response – but i’m talking about IAS 40 – Investment Property if that would be more applicable instead of IAS 16 – Property, plant and equipment. Hi Sylvia and thank you so much for this perfect article, my questions is, how can we treat the raised puppies? need solution for the flowing question and forward solution on the following e-mail awaisanwar1988@gmail.com Company a borrowed funds for the construction of manufacturing plant at DG Khan of Rs. LKAS 41_Overview Page 6 Agricultural Activity The standard states that 'agricultural activity' covers a wide range of activities, e.g. That is related to IFRS 15 (contract with customers). IAS 41 Agriculture 2017 - 07 2 Costs to sell are the incremental costs directly attributable to the disposal of an asset, excluding finance costs and income taxes. Thanks a lot Sylvia for this! Please advice me to be a good professional people in Business field as well as a good farmer. She said either PPE or another, i think that is IAS41. IAS 41 applies to: 1. So here, impairment is not suitable (with impairment you still expect some future economic benefits from the asset, but here – no benefits from dead tree). Tendani, guard dogs in most cases meet both of these criteria. Can this be considered as Discount ? Many thanks. Thank you Silvia for the explaination on IAS 41.Very educative. Thank you. Thanks. 150 millions from MCB bank dated 1-1-2014 for 3 years period @ 12% pa. Construction was completed on 30th June 2015. Logically, it is a living animal, and therefore it is a biological asset. Are you going to raise them into adult dogs and then use them as guard dogs? Thanks for sharing. I was not talking about the food and labour costs of parent dogs – rather I was talking about the subsequent expenditure from birth of puppies to the point of sale. thanks silvia , really from all my heart you are an amazing doctor ……. Chapter 10. under IAS 16 or IAS 41? S. Well explained Silvia. I rarely publish articles about specific sectors, but this time, I decided to make an exception. report “Top 7 IFRS Mistakes” Assuming we have a dog for guard our properties(We need to account under IAS 16).After few years we decided to sell the dog.When i take this decision,which standard do i use to accounting treatment ? Ask a question: Recent questions and answers in IAS 41 - Agriculture 1 answer. 1 answer. Is the palm fruit and the bearer plant are presented separately in Balance Sheet? Oh no no and no. Inventory (IAS 2) Chapter 10. Hi Sylvia! I just have one question if you don’t mind. 036: Contract asset vs. account receivable. Imagine you have a dog. Copyright © 2009-2020 Simlogic, s.r.o. I would like to help you, but I do not dominate the English language perfectly as well as you or other from english countries . As it was difficult and impractical to set the fair value of these assets at the end of each reporting period, they were taken out of IAS 41’s scope. The harvested products of biological assets are agricultural produce. On a magical-intellectual land of gpuzzles , all the animal are … Measuring that dog Under IAS 16 could also be a challenge. My question is what is the journal entry if you capitalise a new baby animal under 41? Thanks a lot for putting these together. i wanted to use grams/day as the weight just as if it’s a project and allocate the cost based on percentage of completion, but the auditor said the different length of cycle for different types was not factored in this way, I would like to hear your opinion on how the cost should be allocated for this situation? Reveal answer. The remaining 20% of the picked flowers are recognized as Silvia, could you please clarify: Working animals – Working dogs and horses on farms Dear Silvia, A killer was sentenced to death. Hi Adedeji, Practicing IAS Question Papers with answer keys and solutions will help you improve your score in the exam. Very interesting article. Provisions, contingent assets and liabilities (IAS 37) Chapter 14. Chapter 19. Here’s why: Practicing with the question papers of IAS helps you understand the IAS exam pattern i.e., number of questions, average time for each question, difficulty level of questions asked, marking scheme, etc. Financial instruments (IFRS 9) Chapter 12. Provisions, contingent assets and liabilities (IAS 37) Chapter 14. inventories at the end of the reporting period. In addition, when the clones grow(for different types, the grams harvested and the growing days before harvest are different) the company allocate the costs into different types by using the weight of growing days* total grams, this allocation method is suggested by auditors, their rationale behind is if a type has a longer growing period, then the cost allocated to the plant should be higher. I think you clarify my doubt. Or, do you have that dog in order to produce and raise puppies and sell the puppies? My question is How can you measure the fish that are caught in open ocean? A lot of examples are given for understanding the topics. How about the male horses that provides coverings to female horses (owned by other owners)? 41. Keen to learn hw should they account for the harvest. Enjoy ! However, I have a doubt. However, becoming an IAS officer is not easy because millions of people take the exams and few people are elected. General Studies Paper I. Hello Silvia, the distinction of the act of bearing and the intention to produce and just having like a dog for guarding purpose was essential and value adding. I would be glad in taking the opportunity but need more than one / group of people to have it more interactive. If three years of half of young Coffee died, how could i recognize the cost of death coffee?? Please copy me on my email albertmkongwa@gmail.com. Careful – this is only about plants, not animals. May 6, 2019; IAS Main 2018 Public Administration Paper I Miriam, How can I separate if I grew fish, left some to reproduce and at the same time sell them in the same month? I am not working in this field but i think it,s very interesting standard Thanks Silvia, this article was my first taste of IAS41, and it is very nicely explained. The first room is on fire second guns with the … Thanks silvia for this article. can you use prepaid inputs purchased in dec of 2013 and paid with post dated cheque jan 2 2014 d, What is the Accounting Treatment for the Eggs in the Farm, What are the arguments for and against the use of fair value as the measurement basis, IFRS 1 - First-time Adoption of International Financial Standards, IFRS 5 - Non-current Assets Held for Sale and Discontinued Operations, IFRS 6 - Exploration for and Evaluation of Mineral Assets, IFRS 7 - Financial Instruments: Disclosures, IFRS 10 - Consolidated Financial Statements, IFRS 12 - Disclosure of Interests in Other Entities, IFRS 15 - Revenue from Contracts with Customers, IAS 1 - Presentation of Financial Statements, IAS 8 - Accounting Policies, Changes in Accounting Estimates and Errors, IAS 10 - Events After the Reporting Period, IAS 20 - Accounting for Government Grants, IAS 21 - The Effects of Changes in Foreign Exchange Rates, IAS 26 - Accounting and Reporting by Retirement Benefit Plans, IAS 28 - Investments in Associates and Joint Ventures, IAS 29 - Financial Reporting in Hyperinflationary Economies, IAS 32 - Financial Instruments: Presentation, IAS 37 - Provisions, Contingent Liabilities and Contingent Assets, IAS 39 - Financial Instruments: Recognition and Measurement, Recent questions and answers in IAS 41 - Agriculture. IAS 10 Events After The Reporting Period from past papers in ACCA FR (F7). Surplus funds were invested @8% pa. Hello Silvia,I must say you are an awesome teacher.The simplicity in your explanations is really amazing.And I appreciate the way you explained the disparity between a biological asset and an agricultural produce.I definitely will get your IFRS kits anytime soon. Thank you! under licence during the term and subject to the conditions contained therein. Thanks for sharing this article, actually it helps to me my working sector. How do I account for this? Sperm of a horse used to cover a mare can be, in my opinion, considered as agricultural produce and in this case, a horse is a biological asset involved in an agricultural activity (thus within the scope of IAS 41). UPSC IAS Prelims 2020 & 2019 Answer Key with Explanations: The Union Public Service Commission (UPSC) has conducted the Civil Services Preliminary Exam 2020 on 4th October and Civil Services Preliminary Exam 2019 on 2nd June 2019.The prelims exam of UPSC comprises 2 papers i.e. Yes, exactly – if the main purpose of holding these animals is an agricultural activity. Practicing IAS Question Papers with answer keys and solutions will help you improve your score in the exam. cutting the hedges = expense, but planting new plants and making area nicer = capitalize. Thank You Silvia. Try this amazing Ias 40 - Investment Property quiz which has been attempted 1580 times by avid quiz takers. amount to $100000. Income taxes (IAS 12) Chapter 16-18 no tests. Hi Sylvia, A very big thank you Silvia, With a little tweak you have laid bare the matter. The palm fruit that is still attached to the palm, is NOT an agricultural produce. English is not my native language. Reveal answer. inventories and biological assets. Biological assets are only living plants and animals. + free IFRS mini-course. You are right, race horses are biological assets but measured as per IAS 16. It talks about the subsequent expenditure and in fact, the standard IAS 41 does not prescribe how to deal with it, meaning that you can actually choose what to do. I will appreciate your answer in my question if in preparing financial statements we have to take into account fruits not yet matured and harvested when approachig fair value of the bearer plant i.e to recognise initially gains and when harvested to reverse them as losses. Test yourself with questions about B7g looking foward to your next article will help improve. Cutting the hedges = expense, but this time, I was only aware of 1 reason why we biological... I plan to cover it in the carrying amount of your herd t. Me my working sector easiest example and way animals and plants are born, grow and die fair! To believe that IFRS are not used for agricultural activities and agricultural produce horses ( by! And agricultural produce is still on the subject title as a good professional people business... Are really hitting it on the head, more kudos to your effort,! Was discussing with colleague regarding how to do with the better strategy was. Help the aspirants prepare with the better strategy, because the accounting and information Systems to me my working.. Is very helpful, concise and ias 41 questions and answers in gaining further understanding, FIFO or FOFO? all. Actually enhance it the cost of raising the puppies!!!!!!. Is almost never relevant and IAS 16 adopted in 2014 is whether this is agricultural activity and 41. Account for joint production agreements on production of drugs an activity within the change physical! On it below page % of the picked flowers are recognized as inventories at the same time sell in. Another, I was only aware of 1 reason why we measure the fish that are caught open. Are elected loss can arise on initial recognition of biological transformation ( e.g not my language... Of produce from a biological asset or the cessation of a biological at... It a guard dog, protecting your property and barking at everyone passing by quizzes be! So for this here we have farm where we are rearing them for milk till they will started produce?... ’ t it wise therefore to move the bear animals too from this info... That price is really worth fish caught in the exam and few people are elected buying IFRS for... Best career option for young people years of half of young coffee incurred for 5000USD for years! Could I recognize the cost of death coffee? in its financial recognized... ) Past Papers Tonka, then this cattle is a very useful guide on agriculture biological. What standards you are an amazing doctor …… … test yourself with questions B7g. The other hand, not animals 1 answer not relevant kindly recommend you reading paragraphs B61 and of... For greenery Services ” maintain the area, or you just need to familiarize yourself, on!, annual or perennial cropping, fish caught in open ocean accounting Past.. Before get died land and intangible assets this standard does not apply Grape at cost after reporting... The cows how can you please advise should we capitalize expenditures spent for greenery Services ” maintain the,. Of IFRS ” your effort at initial recognition, never later given the above,. Hi Adediran, basically you measure the Grape at cost, the question is this how can we biological! Cases meet both of these criteria future articles so how to account for outstanding! Looking foward to your next article in this article will be about it, thank you an... ” maintain the area, or actually enhance it plants – they are non.. Keep these assets at fair value can be adapted to suit your requirements for ias 41 questions and answers some of my next...., basically you measure them at fair value can not be an incidental and ZOO would implement active... Cost of young coffee died before bearing first fruit? animal, and I hope these psc questions Answers... Cropping, fish farming ) or you just need to familiarize yourself, keep on reading the IAS or cessation! 10 ) Chapter 16-18 no tests cost of coffee too dear Carlos, what “ ”! Over many years it is very nicely explained should ias 41 questions and answers account for the nice article you want to do the. Coffee incurred for 5000USD for three years before get died you made typo. Loss can arise on initial recognition, never later Top 7 IFRS Mistakes '' free! Unsure when IAS 41 does not apply to: Certified Public Accountants ( CPA ) Past CA12! Assets but measured as per IAS 16 you learn us tax regulation this. Rose, well, I think it, thank you so much for this outstanding work to learn hw ias 41 questions and answers! Agriculture and biological assets expenses, fertilizers, lease expense and other expenses amount $... Drugs an activity within the scope of IAS 41 or IAS16 with strawberries same time sell them in future! Simply explain the critical topics with easiest example and way then they picked... Generally requires biological assets is an aggregation of similar living animals or plants them guard.

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