CAF-1 · Chapter 7 · Question 1 of 15
Which of the following items is EXCLUDED from the scope of IAS 41 Agriculture?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Fruit trees used to bear agricultural produce over multiple periods.
Explanation
Bearer plants, such as fruit trees used to supply produce for more than one period, are explicitly excluded from IAS 41 and fall under IAS 16 Property, Plant and Equipment. However, the produce growing on them remains under IAS 41.
More IAS 41 Agriculture MCQs
- 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…
- Q6Omega Dairies receives a government grant on the condition that it farms using organic methods for five years. If it stops, the full grant…
- Q7What is the accounting treatment for a biological asset if its fair value cannot be measured reliably on initial recognition?