IAS 41 – NBC Institute

CR – May 2019 – L3 – Q7b – Fair Value Measurement (IFRS 13)

Advise on how to measure cattle in financial statements under IAS 41.

Question

Megida Plc. has ranches across the North where its cattle are reared. The company is quoted on the Nigerian Stock Exchange under the Agricultural Sector. The Financial Controller is unclear on how to measure its cattle in the financial statement according to IAS 41.

Required:
Advise the Financial Controller on how to measure the cattle in the financial statement of Megida Plc.

Answer

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Tags: Biological Assets, Fair Value Measurement, IAS 41, Livestock Valuation
Level: Level 3

Topic: Fair Value Measurement (IFRS 13)

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)

CR – May 2019 – L3 – Q7b – Fair Value Measurement (IFRS 13)

Advise on how to measure cattle in financial statements under IAS 41.

Question

Required:
Advise the Financial Controller on how to measure the cattle in the financial statement of Megida Plc.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Biological Assets, Fair Value Measurement, IAS 41, Livestock Valuation
Level: Level 3

Topic: Fair Value Measurement (IFRS 13)

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)

Question Tag: IAS 41

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CR – May 2019 – L3 – Q7b – Fair Value Measurement (IFRS 13)

Advise on how to measure cattle in financial statements under IAS 41.

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.

CR – May 2019 – L3 – Q7b – Fair Value Measurement (IFRS 13)

Advise on how to measure cattle in financial statements under IAS 41.

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.

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CR – May 2019 – L3 – Q7b – Fair Value Measurement (IFRS 13)

Advise on how to measure cattle in financial statements under IAS 41.

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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)"

CR – May 2019 – L3 – Q7b – Fair Value Measurement (IFRS 13)

Advise on how to measure cattle in financial statements under IAS 41.

You're reporting an error for "CR – May 2019 – L3 – Q7b – Fair Value Measurement (IFRS 13)"

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)"

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