Agriculture – NBC Institute

CR – May 2019 – L3 – Q7a – Fair Value Measurement (IFRS 13)

Explain the accounting treatment for land, plantation, and harvested produce for Agbinye Farms as at March 31, 2018.

Question

Agbinye Farms operates many plantations across Nigeria. The Company recently acquired a freehold land in Benue for a total of N12 million. The trees were planted with the company incurring an operating cost of N4 million up to 31 March 2018, which is the company’s year-end.

The fair value of the plantation (excluding the land) was determined to be N16.4 million as at 31 March 2018. Based on management assessment, the company is expected to get produce from the plantation for a period of 20 years.

The first harvest was done during the year ended 31 March 2018, and the fair value of the produce was estimated as N2.5 million. The Company incurred a total cost of N600,000 to complete the harvest.

The company uses the cost model when possible.

Required:
Discuss the accounting treatment of the above transactions, showing clearly the amount to be recognised in the statement of profit or loss and the statement of financial position as at 31 March 2018.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Agriculture, Biological Assets, Cost Model, Harvesting, IAS 41, Plantation Accounting
Level: Level 3

Topic: Fair Value Measurement (IFRS 13)

AAA – Nov 2012 – L3 – SB – Q5 – Audit of Specialized Industries

This question explores the challenges faced in auditing a teaching hospital and the peculiarities of auditing farm accounts.

Question

You are the audit manager of Kunle Segun & Co (Chartered Accountants) which has been appointed as auditors to St. Anne’s Teaching Hospital and Agrocom Farms Limited.

Required:
a. State FIVE problems associated with the audit of a Teaching Hospital. (10 Marks)

b. List the types of farms and explain the peculiar characteristics associated with the audit of farm accounts. (5 Marks)
(Total 15 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Agriculture, Audit, Audit Challenges, Farm Accounts, Healthcare, Teaching Hospital
Level: Level 3

Topic: Audit of Specialized Industries
Series: NOV 2012

TAX – Nov 2020 – L1 – SA – Q2a – Companies Income Tax (CIT)

Compute the income tax liability for three companies based on their total profits and provide reasons.

Question

Alhaji Jimoh Abdulahi retired from public service in 2010 and went into business. His friend advised him to incorporate some companies.

The following information in respect of the companies is provided:

Name of Company	Apex Manufacturing Co. Limited	Zenith Foods Limited	Base Nigeria Limited
Date of Commencement of Business	January 2, 2010	January 2, 2017	January 2, 2017
Nature of Business	Manufacturing	Agriculture	Trading
Date of Accounts	Year ended December 31, 2018	Year ended December 31, 2018	Year ended December 31, 2018
Revenue (N)	990,400	896,400	900,500
Total Profit (N)	384,000	421,000	396,000

Required:
Compute the income tax liability of each of the companies for the relevant assessment year. Give reasons for your computations.
(11 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Agriculture, Income Tax Liability, Manufacturing, Tax computation, Trading
Level: Level 1

Topic: Companies Income Tax (CIT)
Series: NOV 2020

CR – May 2019 – L3 – Q7a – Fair Value Measurement (IFRS 13)

Explain the accounting treatment for land, plantation, and harvested produce for Agbinye Farms as at March 31, 2018.

Question

The first harvest was done during the year ended 31 March 2018, and the fair value of the produce was estimated as N2.5 million. The Company incurred a total cost of N600,000 to complete the harvest.

The company uses the cost model when possible.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Agriculture, Biological Assets, Cost Model, Harvesting, IAS 41, Plantation Accounting
Level: Level 3

Topic: Fair Value Measurement (IFRS 13)

AAA – Nov 2012 – L3 – SB – Q5 – Audit of Specialized Industries

This question explores the challenges faced in auditing a teaching hospital and the peculiarities of auditing farm accounts.

Question

You are the audit manager of Kunle Segun & Co (Chartered Accountants) which has been appointed as auditors to St. Anne’s Teaching Hospital and Agrocom Farms Limited.

Required:
a. State FIVE problems associated with the audit of a Teaching Hospital. (10 Marks)

b. List the types of farms and explain the peculiar characteristics associated with the audit of farm accounts. (5 Marks)
(Total 15 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Agriculture, Audit, Audit Challenges, Farm Accounts, Healthcare, Teaching Hospital
Level: Level 3

Topic: Audit of Specialized Industries
Series: NOV 2012

TAX – Nov 2020 – L1 – SA – Q2a – Companies Income Tax (CIT)

Compute the income tax liability for three companies based on their total profits and provide reasons.

Question

Alhaji Jimoh Abdulahi retired from public service in 2010 and went into business. His friend advised him to incorporate some companies.

The following information in respect of the companies is provided:

Name of Company	Apex Manufacturing Co. Limited	Zenith Foods Limited	Base Nigeria Limited
Date of Commencement of Business	January 2, 2010	January 2, 2017	January 2, 2017
Nature of Business	Manufacturing	Agriculture	Trading
Date of Accounts	Year ended December 31, 2018	Year ended December 31, 2018	Year ended December 31, 2018
Revenue (N)	990,400	896,400	900,500
Total Profit (N)	384,000	421,000	396,000

Required:
Compute the income tax liability of each of the companies for the relevant assessment year. Give reasons for your computations.
(11 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Agriculture, Income Tax Liability, Manufacturing, Tax computation, Trading
Level: Level 1

Topic: Companies Income Tax (CIT)
Series: NOV 2020

Question Tag: Agriculture

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CR – May 2019 – L3 – Q7a – Fair Value Measurement (IFRS 13)

Explain the accounting treatment for land, plantation, and harvested produce for Agbinye Farms as at March 31, 2018.

AAA – Nov 2012 – L3 – SB – Q5 – Audit of Specialized Industries

This question explores the challenges faced in auditing a teaching hospital and the peculiarities of auditing farm accounts.

TAX – Nov 2020 – L1 – SA – Q2a – Companies Income Tax (CIT)

Compute the income tax liability for three companies based on their total profits and provide reasons.

CR – May 2019 – L3 – Q7a – Fair Value Measurement (IFRS 13)

Explain the accounting treatment for land, plantation, and harvested produce for Agbinye Farms as at March 31, 2018.

AAA – Nov 2012 – L3 – SB – Q5 – Audit of Specialized Industries

This question explores the challenges faced in auditing a teaching hospital and the peculiarities of auditing farm accounts.

TAX – Nov 2020 – L1 – SA – Q2a – Companies Income Tax (CIT)

Compute the income tax liability for three companies based on their total profits and provide reasons.

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CR – May 2019 – L3 – Q7a – Fair Value Measurement (IFRS 13)

Explain the accounting treatment for land, plantation, and harvested produce for Agbinye Farms as at March 31, 2018.

You're reporting an error for "CR – May 2019 – L3 – Q7a – Fair Value Measurement (IFRS 13)"

AAA – Nov 2012 – L3 – SB – Q5 – Audit of Specialized Industries

This question explores the challenges faced in auditing a teaching hospital and the peculiarities of auditing farm accounts.

You're reporting an error for "AAA – Nov 2012 – L3 – SB – Q5 – Audit of Specialized Industries"

TAX – Nov 2020 – L1 – SA – Q2a – Companies Income Tax (CIT)

Compute the income tax liability for three companies based on their total profits and provide reasons.

You're reporting an error for "TAX – Nov 2020 – L1 – SA – Q2a – Companies Income Tax (CIT)"

CR – May 2019 – L3 – Q7a – Fair Value Measurement (IFRS 13)

Explain the accounting treatment for land, plantation, and harvested produce for Agbinye Farms as at March 31, 2018.

You're reporting an error for "CR – May 2019 – L3 – Q7a – Fair Value Measurement (IFRS 13)"

AAA – Nov 2012 – L3 – SB – Q5 – Audit of Specialized Industries

This question explores the challenges faced in auditing a teaching hospital and the peculiarities of auditing farm accounts.

You're reporting an error for "AAA – Nov 2012 – L3 – SB – Q5 – Audit of Specialized Industries"

TAX – Nov 2020 – L1 – SA – Q2a – Companies Income Tax (CIT)

Compute the income tax liability for three companies based on their total profits and provide reasons.

You're reporting an error for "TAX – Nov 2020 – L1 – SA – Q2a – Companies Income Tax (CIT)"

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