CAF-1 · Chapter 7 · Question 3 of 15
At the point of harvest, how is agricultural produce measured?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) At fair value less costs to sell.
Explanation
IAS 41 requires agricultural produce harvested from an entity's biological assets to be measured at its fair value less costs to sell at the point of harvest. This becomes its deemed cost for IAS 2.
More IAS 41 Agriculture MCQs
- 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?
- Q8Which of the following processes is NOT a component of 'biological transformation' as defined by IAS 41?
- Q9Which of the following distinguishes agricultural activity from other activities like ocean fishing or deforestation?