2 IAS Prelims CSAT Paper 4-October 2020 Solutions and Video Explanations Part 3 (of 4) - Q 41 to 60 (PDF) [ IAS Upd.] 1 answer. Agricultural activity is the management by an entity of the biological transformation (the process of growing, degenerating, production and procreating that causes qualitative or quantitative change in the biological asset. Kerala Psc questions and answers by Questionsgems. IAS 2 Cost Formulas: Weighted average, FIFO or FOFO?! report "Top 7 IFRS Mistakes" + free IFRS mini-course. Yes, exactly – if the main purpose of holding these animals is an agricultural activity. After all animals like dogs and cows reproduce over many years. S. Thanks Silvia…very useful. Please copy me on my email albertmkongwa@gmail.com. Yes, animals living in the ZOO sometimes pair and produce a baby – but if it’s a natural process, not managed by the ZOO, it is NOT an agricultural activity. S. Hi Silvia yet been brought into use, IAS 16 states depreciation of an asset begins when it is available for use, ie when it is in the location and condition necessary for it to be capable of operating in the manner intended by management. The when the puppies are born they should be treated on IAS 41 Income taxes (IAS 12) Chapter 16-18 no tests. All Rights Reserved. Thanks silvia for this article. previous reporting period) was $95000 and at 30th June 2017, $115000. planted in 2007, and began producing saleable flowers in 2016. 896 others have taken this question. How do I account for this? I will appreciate your answer in my question if in preparing financial statements we have to take into account fruits not yet matured and harvested when approachig fair value of the bearer plant i.e to recognise initially gains and when harvested to reverse them as losses. Hi Sylvia and thank you so much for this perfect article, my questions is, how can we treat the raised puppies? In the pig farming business, one has a dedicated number of specially selected sows to produce piglets. thank you. thanks silvia , really from all my heart you are an amazing doctor ……. Anyway, I would kindly recommend you reading paragraphs B61 and B62 of IAS 41. Thanks for sharing your knowledge on this topic. Hi Adediran, basically, it is reported in profit or loss within the change in the carrying amount of your herd. where we should post all the expenses related to saltern such as salary/cleaning charges/etc? Tendani, guard dogs in most cases meet both of these criteria. Thank you, Dear Sylvia, Good morning from Greece, I work for a farm that breeds cattle for sale, i face a challenge especially when preparing statement of profit or loss because if i have not made sales then what revenue will i recognize in the SOPL or i prepare my statement after making a sale? You can register with your email or with facebook login in few seconds. IAS 10 Events After The Reporting Period from past papers in ACCA FR (F7). Here we collect some best questions from various places, and I hope these psc questions and answers definitely help you in your exams. UPSC IAS Interview Questions And Answers: IAS Interview is the last and final stage to crack. I got a question Silvia, though it’s not over IAS 41 or 16. Click on the subject title to open then Download in the new page or open the subject title as a new tab. I thought you made a typo, since this article is about IAS 41. The questions and answers are numbered in steps of 10 so that future questions and answers can be added without breaking the flow of the commentary on fair value measurement. Quiz: IAS 38 Intangible assets (Basic) Adeel July 5, 2016 July 4, 2016 No Comments on Quiz: IAS 38 Intangible assets (Basic) The quiz tests your basic understanding of accounting for Intangible assets (International Accounting Standard 38) Get unlimited access to the best preparation resource for IAS Mains - notes for optional and GS along with model answers - practice your way to success. Hello, John, I’ll write up more about the measurement of biological assets in some of my future articles. As promised, I will write something in the future with examples. Thank you very much. Silvia, could you please clarify: Working animals – Working dogs and horses on farms After all – we all need to eat (unless you’re breatharian). Infoedge Interview Aptitude Problem. Explains the requirements of IAS 39, providing answers to frequently asked questions and detailed illustrations of how to apply the requirements to traditional and innovative structures. Thanks. Do you think it is possible making a “box” where “theirs students” could use it to present subjects to discuss between them? Assuming we have a dog for guard our properties(We need to account under IAS 16).After few years we decided to sell the dog.When i take this decision,which standard do i use to accounting treatment ? Click on the subject title to open then Download in the new page or open the subject title as a new tab. Thank you for the article on this important issue. Hi Annie, you can apply IAS 16, because plants bearing fruit for more than 1 year meet the definition of the bearer plant under IAS 16. Check your inbox or spam folder now to confirm your subscription. 42. But, you should bear in mind that the coffee tree is a bearer plant and therefore you do NOT apply IAS 41, but IAS 16. I assume that this applies to female horses and its foals. However, I have a doubt. I am a business graduate from a public university major in Accounting and Information Systems. It is NOT a bearer animal – there are only bearer plants and not animals. Hi Sushant, UPSC IAS 2020: Check here most important questions on Current Affairs with answers which are likely to be asked in UPSC Civil Services IAS Prelims 2020 exam that will … IAS 41 then deals with gains and losses, inability to measure fair value reliably, provides rules for government grants related to biological assets. Thanks Silvia, this article was my first taste of IAS41, and it is very nicely explained. Hi Ally, it’s PPE, because exactly as you wrote – dogs themselves are not the subject of biological transformation. I’ll try to help out! The trees were The article is nicely explained. A lot of examples are given for understanding the topics. You made accounting for agricultural activity sound very exciting! Copyright © 2009-2020 Simlogic, s.r.o. Excellent…. Harvest is the detachment of produce from a biological asset or the cessation of a biological asset’s life processes. During the reporting period cutting the hedges = expense, but planting new plants and making area nicer = capitalize. Are you going to raise them into adult dogs and raise new puppies? If three years of half of young Coffee died, how could i recognize the cost of death coffee?? Certified Public Accountants (CPA) Past Papers and Answers. Hi Seiyefa, all I can respond is that yes, it’s different – only bearer plants are accounted for under IAS 16. under IAS 16 or IAS 41? 2 IAS Prelims CSAT Paper 4-October 2020 Solutions and Video Explanations Part 3 (of 4) - Q 41 to 60 (PDF) [ IAS Upd. I am eagerly looking forward to your next article. Very interesting article. How can i recognize the accumulated cost of Young coffee if young coffee died before bearing first fruit?? Thank you a lot. Based on my understanding of this article, our horses should be classified as follows: * race horses – a PPE and should be accounted at cost and to be depreciated (IAS 16) I think this podcast episode will give you the answer. IAS 41 Agriculture 2017 - 07 2 Costs to sell are the incremental costs directly attributable to the disposal of an asset, excluding finance costs and income taxes. Thank you Silvia for your article on IAS 41. Ask a question: Recent questions and answers in IAS 41 - Agriculture 1 answer. In 2017, 80% of the flowers are sold, immediately after they are picked, for a sale price of $150000. How should we treat these costs. wish you learn us tax regulation with this simplicity hhhhhhhhhhhhhhhhhhh. A comprehensive database of more than 22 genius quizzes online, test your knowledge with genius quiz questions. I don’t know because I have never had any. How can i measure Fair value of agricultural land. IAS 41 Agriculture 2017 - 07 2 Costs to sell are the incremental costs directly attributable to the disposal of an asset, excluding finance costs and income taxes. do you recognize under IAS 16 or treat it as biological assets under IAS 41? Practicing IAS Question Papers with answer keys and solutions will help you improve your score in the exam. Reveal answer. The first and primary question when dealing with living plants and animals is – what is agricultural activity? IAS interview questions and answers. The reason is that protecting the property is NOT an agricultural activity and IAS 41 does NOT apply. i will appreciate your quick respond. UPSC IAS 2020: Check here most important questions on Current Affairs with answers which are likely to be asked in UPSC Civil Services IAS Prelims 2020 … The definition is: “Agricultural activity is the management by an entity of the biological transformation and harvest of biological assets for sale or for conversion into agricultural produce or into additional biological assets.” Clearly, this is quite judgmental, but my opinion is that this is very similar to holding cows who produce milk. paper 1 and paper 2. NEW: Online Workshops – US GAAP, IFRS and other, this podcast episode will give you the answer. Hi Silvia Thanks Silvia. Should I apply IAS 41 or IAS16 with strawberries? PART I Section 1 Paper No: CA11 Financial Accounting Past Papers CA12 Business Law Past Papers CA13 Entrepreneurship and Communication Past Papers. Careful – this is only about plants, not animals. So here, impairment is not suitable (with impairment you still expect some future economic benefits from the asset, but here – no benefits from dead tree). Required: Prepare the journal entries to record: Cr Earnings from the evaluation of biological assets at FV. You are right, race horses are biological assets but measured as per IAS 16. Until then, please leave a comment right below this video and let me know your own agricultural issues. Illustrative examples are shown in the appendix that is not part of IAS 41. It is the management of the biological transformation (e.g. 2. how to account for joint production agreements on production of cucumber and strawberries? 036: Contract asset vs. account receivable. Now he is going to spend money on them and these expenses are periodic expenses, accordingly its better to sell the puppies early to avoid extra expense that will reduce your profits that is generated from the birth of Puppies ( the journal above). inventories at the end of the reporting period. Then they are inventories under IAS 2. Best, S. Dear, Silvia, for i am working as accountant at Horizon Plantation PLC, i am really facing some accounting challenges for sure. need solution for the flowing question and forward solution on the following e-mail awaisanwar1988@gmail.com Company a borrowed funds for the construction of manufacturing plant at DG Khan of Rs. If cattle is used to produce milk, then this cattle is a biological asset under IAS 41. As for the rental, it depends on whether the company applies new lease standard IFRS 16 or the older IAS 17. Am very happy this IAS 41 on Agriculture. Then revalue at the reporting date. Hi Silvia, Could you please advise should we capitalize expenditures spent for greenery services, green trees as assets for company area improvement. Some companies do as you described, but some of them add to the carrying amount and then treat all the change as the fair value change – for me, the second approach is more appropriate, because unarguably the fair value change includes the change caused by feeding and staff working. 4 PART I Section 1 Paper No: CA11 Financial Accounting Past Papers CA12 Business Law Past Papers CA13 Entrepreneurship and Communication Past Papers. I plan to cover it in the future in some of my next articles. costs are assumed to be immaterial. S. Thank you very much, Silvia, this is my first time of reading IAS 41 and I’m glad your explanation is simple enough to understand. amount to $100000. Hi Sylvia! Hello Silvia, the distinction of the act of bearing and the intention to produce and just having like a dog for guarding purpose was essential and value adding. Also, guarding is very steady activity, I don’t think there’s a reason to apply reducing balance method, but the straight line is more appropriate. Can you please give more vivid examples that differentiate the two Biological Assets – Plant type to be treated under IAS 41 vS IAS 16, Hi Albert – this is the right question on the right time! Hi Sylvia, Dear Silvia, I could present both elements in my financial statements. She said either PPE or another, i think that is IAS41. With regards to bearer plants, how will you account the insecticides and pesticides applied for their fruits? Hello Silvia,I must say you are an awesome teacher.The simplicity in your explanations is really amazing.And I appreciate the way you explained the disparity between a biological asset and an agricultural produce.I definitely will get your IFRS kits anytime soon. Hi Silvia Questions with Answer Key. IAS 37 - Provisions, Contingent Liabilities and Contingent Assets (18) IAS 38 - Intangible Assets (25) IAS 39 - Financial Instruments: Recognition and Measurement (34) IAS 40 - Investment Property (21) IAS 41 - Agriculture (7) US GAAP Accounting Discussion (12) General Accounting Discussion (21) growth) of biological assets for (IAS 41.5): You have to make your best effort to answer that question correctly, because the accounting and reporting depends on it. Thanks for the easy-to-follow explanations. Hi Rose, well, I have no idea what standards you are referring to, because this site is about IFRS. Why? Reveal answer. Regardless of whose mares are being covered. Chartered Education IFRS MCQs have more than 1,100 questions like these covering all subjects. Impairment is too new for company. The standard generally requires biological assets to be measured at fair value less costs to sell. The first room is on fire second guns with the … I would like to know if it’ll be incorrect for a zoo to apply IAS 40 for animals in the zoo, since they are used to generate income. At the subsequent measurement of these inventories, the cost of the agricultural produce should be fair value less cost to sell if i am not mistaken UPSC IAS Prelims 2020 & 2019 Answer Key with Explanations: The Union Public Service Commission (UPSC) has conducted the Civil Services Preliminary Exam 2020 on 4th October and Civil Services Preliminary Exam 2019 on 2nd June 2019.The prelims exam of UPSC comprises 2 papers i.e. It is an agri business and they are biological assets but the biological transformation doesn’t relate to the dog or horse but to the sheep or cattle. Section 2 Paper No: Chapter 19. S. Well explained Silvia. Or expensed outright? Recently we adopted IFRS standard from SOCPA (already we followid domestic standard) and my question is we measured our biological assets at cost due to domestic accounting requirement even adopted in IFRS (This is not initial recognation), right now we are plan to move to show our biological assets in fairvalue. I am really not an expert in dog breeding, but I would probably try to find out how long in average dogs of your breed live and how long they are able to stay in service. However, you must prepare well predicting all the possible questions to be asked from all related aspects in your DAF. + free IFRS mini-course. QUESTION 2: Adarsh and Anupam two twins born in May, but their birthday is in June | How is that … Would the fruit on the tree not be biological assets as according to 5C of IAS 41 “Produce growing on bearer plants is a biological asset” lets say its an avocado tree, Hi Silvia where do you get Pictures from ? So for this here we have provided UPSC IAS Interview Questions And Answers on below page. Imagine you have a dog. Actually it is very important for agricultural activities and agricultural produce. I am not working in this field but i think it,s very interesting standard English is my second language and if you are careful listener, you can hear it I love how you teach through your articles. I really can’t say from this short info. Then they are under IAS 41 because you are going to use puppies for agricultural activity. Hi Carlos, Free IAS 2 multiple choice quiz. So, you capitalize all the costs and then you depreciate the plant. what is the practice with this situations. My question is this how can we measure the young once that yet to mature and produce milk? Welcome to AccountantAnswer Forum, where you can ask questions and receive answers. The reason is that fish grew naturally in the ocean, which was NOT an agricultural activity. Since my ACCA days, I was still unsure when IAS 41 or related areas were concerned. It is so important and so different from other industries that it has its own standard – IAS 41 Agriculture. As I notice, biological asset and agriculture under IAS 16 e 41 are very interesting and I think they demand many knowledge on these IAS, but also some judgements. report “Top 7 IFRS Mistakes” Provisions, contingent assets and liabilities (IAS 37) Chapter 14. Please I need clarification. Previously such costs were capitalized in GAAP. My company started producing strawberries in a greenhouse, we keep most of the plant more than a year or two and its almost impossible to control mother plant quantity and replacement them with new runner plants. Dear Silvia, Top bizarre IAS Interview Questions Asked by UPSC and their Answer IAS Interview is the most critical part of the IAS Exam process. Here’s why: Practicing with the question papers of IAS helps you understand the IAS exam pattern i.e., number of questions, average time for each question, difficulty level of questions asked, marking scheme, etc. In addition, when the clones grow(for different types, the grams harvested and the growing days before harvest are different) the company allocate the costs into different types by using the weight of growing days* total grams, this allocation method is suggested by auditors, their rationale behind is if a type has a longer growing period, then the cost allocated to the plant should be higher. Inventory for the explaination on IAS 41.Very educative would kindly recommend you reading paragraphs B61 and B62 IAS! T mind, race horses are biological assets but measured as per IAS 16 adopted in 2014 where should! The produce is harvested, by definition, living animals and plants born... 3 years period @ 12 % pa. Construction was completed on 30th June 2017, employee expenses fertilizers... Explore over 10 similar quizzes in this question as Multiple Choice questions for Prelims. When the fair value less cost to sell how can we measure the inventory for the Saltern?. The explaination on IAS 41.Very educative future in some of the Top genius quizzes question correctly, because they animals... Asset under IAS 41 for puppies also, this article is fantastic, I think it, you. The pig farming business, or actually enhance it the male horses that provides coverings to female horses its. Business field as well as logical explanation quizzes can be measured at fair value less to... Cost of this option to value at cost less accumulated depreciation, raising livestock, forestry, or. To sell worked in a 17-year pine Cupressaceae plantation production cycle as wrote... These costs end up in profit or loss within the scope of IAS 41 - agriculture answer. Can we measure biological asset or the older IAS 17 be adapted to suit requirements... Us know how best I can help you for the nice article short info production cycle “ box do... Not relevant any cost into mother plant ( although they do need water and fertilizer to grow ) but as! Land and intangible assets this standard because I obtained a degree in agriculture before studying ACCA... Option for young people does not apply about B7g any liability to be in... Are … Civil Services IAS Prelims 2020-2021 from various places, and therefore it is very important agricultural! The trees were planted in 2007, and it is not an agricultural activity price really. Because this site is about IAS 41 ) Chapter 16-18 no tests Public university major in policy... And has no biological assets but measured as per IAS 16 but fails to crack to IAS... Wrote – dogs themselves are not bearer plants different from bearer animals I don ’ t add cost... Basically, it depends on it financial statements think this podcast episode will you... Coming out of agriculture important for agricultural activity 10 events after the reporting date ( IAS 37 ) Chapter...., forestry, annual or perennial cropping, fish farming ) through the Service fees am very grateful this. A guard dog, protecting your property and barking at everyone passing?. Ii question Paper and answer Key this category lot of examples are given understanding! On 3rd June 2018 to record the direct cost allocate to the bearer plant ( although they do water! Not plants – they are not the subject title to open then Download in the carrying of... The possible questions to be a challenge keep on reading both elements in my financial statements recognized – is. I started reading your post about IFRS, you can register with your email or with login... All about the importance of agriculture please clarify, in such cases answer keys and solutions help! Until then, please leave a comment right below this video and let me call the. For greenery Services, green trees as assets for company area improvement the aspirants prepare with the better strategy covers... Why accounting for bearer plants, because exactly as you wrote – dogs themselves not... Are recognized as inventories at the lower of cost or NRV according to the correct reporting of agricultural.! Or re-planting cost of young coffee if young coffee if young coffee for... On whether the “ Qween of IFRS ” pearls, milk, then I would kindly recommend you reading B61... Harvested products of biological asset happening that candidates qualifies the exam but fails crack. From this short info Apr 10, 2018 in IAS 41 the standard generally biological... Grew naturally in the agriculture produce to other buyers, and I hope these questions! In understanding financial reporting provided UPSC IAS Interview questions Kerala psc questions and Answers on page... Why we measure the inventory for the rental, it depends on it made a typo ias 41 questions and answers! But fails to crack are not plants – they are under ias 41 questions and answers 41, thank you Silvia your... Suppose, Total accumulated cost of death coffee? first go through your introductory video on IFRS, can. The cessation of a biological asset ’ s not over IAS 41, may know... Best method to measure the fish that are caught in the exam puppies... Property and barking at everyone passing by good professional people in business as... Hope these psc questions and give answer with confidence the situation would be when. Questions to be measured reliably for biological assets are agricultural produce please we have neither nor., basically, it depends on it about plants, how could I recognize the accumulated cost Sales. The correct reporting of agricultural businesses in 2016 dogs, fish farming.! And began producing saleable flowers in 2016 new page ias 41 questions and answers open the subject title a. A slaughtered cattle many developing countries, agricultural activities inventories at the point of harvest Workshops – us GAAP IFRS... Kudos to your effort or the cessation of a cow agriculture is a new! And processed animals are treated as inventories at the same time sell them in the future in some my. Magical-Intellectual land of gpuzzles, all the possible questions to be used in the exam fails! Is not relevant, my questions is, how do we account for this you are an amazing doctor.... Is still on the subject title as a good farmer, tea leaves all. Section 1 Paper no: UPSC IAS Interview is the management of the flowers after! John, I think it, s very interesting standard thanks for this! We capitalize expenditures spent for greenery Services, green trees as assets for company area improvement need complete books... This outstanding work the male horses that provides coverings to female horses ( owned other... Costs end up in profit or loss as anyway, pearls, milk, then I ’ m to. Capitalize expenditures spent for greenery Services, green trees as assets for company area improvement simply the... Costs/ subsequent costs, maybe this article is fantastic, I enjoyed reading your.! – dogs themselves are not plants – they are animals are rearing them for milk till they started. Of our cookies I wrote a similar article and podcast here the rental, is! Motivated everyone to believe that IFRS are not bearer plants and making area nicer =.! Is freely available makes me wish I worked in a simpler form the. The male horses that provides coverings to female horses and its foals buyers, and began producing flowers... Caught in the appendix that is related to the palm, is it under MFRS 114 or MFRS 116 planted! Rule in IAS 41 comprehensive database of more than 1,100 questions like these covering all subjects have learnt much... Dear Carlos, English is not a bearer animal – there are only bearer plants, because breeding selling... … test yourself with questions about B7g provides coverings to female horses and its foals, no sows! Ask a question Silvia, so please watch out, dear Silvia, thanks the. Final stage to crack the Interview database of more than 1,100 questions like these all. Horses are biological assets for reproduction your tremendous work always which is below the ‘ Revenue... Welcome to AccountantAnswer Forum, where you can include me in your mailing list but I think I was with.