1-Change in fair value of the biological assets between the beginning balance and ending balance should be classified to: a. price change and physical change p. price change and quality change c. price change and quantity change d. quantity change and quality change
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- 1. What is the carrying amount of the biological assets on December 31? а. 3,160,000 b. 2,350,000 c. 2,800,000 d. 2,380,000 What amount should be reported as gain from change in fair value attributable to price change? a. 810,000 b. 450,000 c. 360,000 d. 0. 3. What amount should be reported as gain from change in fair value attributable to physical change? а. 810,000 b. 450,000 c. 360,000 d. 700,000True or False: 1. In all cases, an entity shall measure agricultural produce at the point of harvest at fair value less cost to sell 2. PAS 41 reflects the view that the fair value of agricultural produce at the point of harvest can always be measured reliably Multiple Choice 1. If there is a change from double declining balance to straight line method A. The accumulated depreciation is adjusted to its appropriate balance through retained earnings based on the straight-line method B. The accumulated depreciation is not adjusted but the remaining carrying amount is allocated over the remaining life using the straight-line method C. The accumulated depreciation is adjusted to its appropriate balance through net income based on the straight-line method D. The accumulated depreciation is not adjusted but the remaining carrying amount is allocated over the original life using the straight-line method 2. Any cash discount available on a credit purchase, whether taken or…1. The carrying amount of biological assets as of December 31 is? 2. The increase in FV - CTS of biological assets in the current period due to price changes is? 3. The increase in FV - CTS of biological assets in the current period due to physical changes is?
- Fair value measurement Burnham Co. has an asset that is sold in two different active markets. Price information from the two markets is as follows: Market #1 Market #2 Market price Transaction costs Transport costs 270 265 6. 10 15 Requirements: a. If Market #2 is the principal market for the asset, how much is the fair value? b. If neither market is the principal market for the asset, how much is the fair value?1. PAS 41 Agriculture is applicable to which of the following? a. Agricultural produce after the point of harvest b. Bearer plants related to agricultural activity c. Living animals related to agricultural activity d. Unconditional government grants related to biological assets measured at cost 2. Which of the following standard is most likely applicable to agricultural produce after the point of harvest? a. PAS 41 Agriculture c. PAS 2 Inventories b. PAS 16 Property, Plant and equipment d. Any of these 3. PAS 41 is applicable to which of the following items? a. Land used for farming b. Agricultural produce after point of harvest c. Unconditional government grants related to bearer plants d. Unconditional government grant related to consumable living animals measured at fair value costs to sell. 4. Which of the following is considered as a biological asset under PAS 41? a. Carcass c. Pig b. Ham…When determining the estimated useful life of an intangible asset which factor is NOT important to consider? Q24 Select one: a. The initial costs incurred in developing the intangible asset. b. The purpose for which the asset will be used and for how long the usage will last. c. Will competitors’ ability to enter the market have an impact on the estimated future demand for the products or the asset? d. With change in management teams, will the new management team be able to manage the asset effectively?
- Biological assets are measured as followsInitial Subsequenta. cost fair value less costs to sellb. fair value fair valuec. fair value lower of cost and fair value less cost to selld. fair value less costs to sell fair value less costs to sellUnder IFRS, the initial revaluation of equipment when book value exceeds fair value results in a. An increase in net income. b. A decrease in net income. c. An increase in other comprehensive income. d. A decrease in other comprehensive income.Which of the following accounting policies is an example of costs versus benefits constraint being exercised in the disclosure of financial information? Inventory is valued at lower of cost or market. Property, plant and equipment are appraised and revalued every three years. Biological assets are stated at fair value unless the fair value cannot be measured reliably. Research and development costs are expensed as incurred.
- A depreciation method that charges a varying amount to expense for each period of an asset's useful life depending on its usage. An expenditure to make a plant asset more efficient or productive. 2 An expenditure reported on the current income statement as an expense because it does not provide a material benefit in future periods. 10 A revision in a financial statement amount that results from new 1. Depletion 2. Betterment information, subsequent developments, better insight, or improved judgment. 3. Units of Production 4. Intangible Assets A method that yields larger depreciation expense during the early years of an asset's life and smaller expense in the later years. 5. Ordinary Repair 6. Accelerated Depreciation 7. Change in Accounting Estimate An expenditure made to keep a plant asset in normal, good operating 8. Goodwill condition. 9. Total Asset Turnover The process of allocating 10. Revenue Expenditure the cost of natural resources to periods when they are consumed. The amount…Occasionally, events occur that change an asset's value after purchase. Which of the following is true regarding these changes in value? a.Increases in asset value are recognized.b.Reductions in asset value are recognized.c.Both decreases and increases are recognized.d.Neither decreases nor increases are recognized.Why is depreciation expense recognized? Select one: a. To provide a better estimate of the market value of the depreciated assets. b. So that the balance sheet value of plant assets will more accurately reflect the replacement cost of the assets. c. To ensure that cash will be available at the end of the assets' useful life in order to replace it. d. To match the cost of the asset against the revenue using a reasonable allocation. method. Save AnswersNext