CAF-1 · Chapter 7 · Question 14 of 15
A government grant is received relating to a biological asset measured at cost less accumulated depreciation. Which standard governs the accounting for this specific grant?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) IAS 20 Accounting for Government Grants.
Explanation
If a biological asset is measured at cost (due to inability to measure fair value reliably) or is a bearer plant, any related government grant is accounted for under IAS 20, not IAS 41.
More IAS 41 Agriculture MCQs
- Q1Which of the following items is EXCLUDED from the scope of IAS 41 Agriculture?
- Q2Under IAS 41, how should a biological asset be measured on initial recognition and at the end of each reporting period?
- Q3At the point of harvest, how is agricultural produce measured?
- Q4An entity acquires a herd of cattle. Due to the deduction of estimated costs to sell, the fair value less costs to sell is lower than the…
- Q5Zenith Farms receives an unconditional government grant related to a biological asset measured at fair value less costs to sell. When…