NZ IAS 41 Agriculture applies to:Question 10Select one:a.all assets that undergo biological transformation.b.all biological assets, except land related to agricultural activity.c.biological asset when they relate to agricultural activity.d.all biological assets.
Question
NZ IAS 41 Agriculture applies to:Question 10Select one:a.all assets that undergo biological transformation.b.all biological assets, except land related to agricultural activity.c.biological asset when they relate to agricultural activity.d.all biological assets.
Solution
The correct answer is c. NZ IAS 41 Agriculture applies to biological assets when they relate to agricultural activity. This standard deals with the accounting for agricultural activity – the transformation of biological assets (living plants and animals) into agricultural produce (harvested product of the entity's biological assets). The standard generally requires biological assets to be measured at fair value less costs to sell.
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