BSA 2102

ACTIVITY – PAS 41 AGRICULTURE

Question 1
PAS 41 is applicable to
a. Land related to agricultural activity
b. Intangible assets related to agricultural activity
c. Agricultural produce at the point of harvest
d. Bearer plants related to agricultural activity
Question 2
Which of the following is a biological asset? No answer
None
a. Carcass
b. Milk
c. Sugar
d. Oil palms
Question 3

Which of the following is an agricultural produce?

a. Tobacco plants
b. Sheep
c. Tea
d. Wool
Question 4
This is the management of the biological transformation and harvest of biological assets for sale or for
conversion into agricultural produce or into additional biological assets.
a. Agricultural activity
b. Agricultural management
c. Biological transformation
d. Biological management
Question
This is the detachment of produce from a biological asset.
a. Agricultural produce
b. Harvest
c. Cessation
d. Bearing
Question 6
Which of the following is not a feature of agricultural activity?
a. Capability of change
b. Management of change
c. Measurement of change
d. Freedom of change

Question 7

Statement I: Costs to sell are the incremental costs directly attributable to the disposal of an asset,
excluding finance costs and income taxes.
Statement II: A group of biological assets is an aggregation of dissimilar living animals or plants.
a. True; True
b. True; False
c. False; True
d. False; False
BSA 2102
ACTIVITY – PAS 41 AGRICULTURE

Question 8
Statement I: Entities often enter into contracts to sell their biological assets or agricultural produce at a
future date. Contract prices may be used in measuring fair value.
Statement II: A gain or loss arising on initial recognition of a biological asset at fair value less costs to
sell and from a change in fair value less costs to sell of a biological asset shall be included in the other
comprehensive income for the period in which it arises.
a. True; True
b. True; False
c. False; True
d. False; False

Question 9
Statement I: In all cases, an entity measures agricultural produce at the point of harvest at its fair value
less costs to sell.
Statement II: A biological asset is a living animal or plant.
a. True; True
b. True; False
c. False; True
d. False; False

Question 10
Broiler shall be accounted for using
a. IAS 16
b. IAS 38
c. IAS 41
d. IAS 2
Question 11
What is the title of PAS 41?
a. Agriculture
b. Agricultural Activity
c. Biological Asset
d. Biological Assets

Question 12
Which of the following is not a bearer plant?
a. Coconut tree
b. Rubber tree
c. Apple tree
d. Forest tree to be harvested and sold as lumber

Question 13
The measurement of biological assets involved in agricultural activities should be based on
a. Net realizable value
b. Historical cost
c. Fair value approach
d. Replacement cost

Question 14
Grapes, after harvest, will need significant time before it can be sold as wine. This product should be
accounted for in accordance with
a. IAS 2
BSA 2102
ACTIVITY – PAS 41 AGRICULTURE

b. IAS 16
c. IAS 40
d. IAS 41

Question15
A gain arising from the initial recognition of a biological asset should
a. Be recognized in profit or loss
b. Be recognized in other comprehensive income
c. Be recognized as prior period adjustment
d. Not be recognized

Question 16
Which of the following is not an agricultural activity?
a. Tuna fishing from ocean
b. Farming of mollusks
c. Farming of fish
d. Raising domesticated animals in an agricultural setting to produce commodities

Question 17
Which of the following does not result in biological transformation
a. Degeneration
b. Procreation
c. Growth
d. Production

Question 18
Dolphins, which are used for recreational purposes in water parks, should be classified in accordance with
a. IAS 41
b. IAS 16
c. IAS 40
d. IAS 2

Question 19
Which of the following is an agricultural produce?
a. Apple
b. Bush
c. Margarine
d. Sugar

Question 20
Not a biological asset
a. Tree
b. Egg
c. Pig
d. Cow
BSA 2102
ACTIVITY – PAS 41 AGRICULTURE

Deer Company produces milk for sale to local ice cream producers. The entity began operation on January
1, 2020 by purchasing 650 milk cows fro Php8,000,000. The entity had the following information available
at the year-end relating to cows:

Acquisition cost, Jan 1, 2020………………………………………………………………...8,000,000

Change in in value due to growth and price change…………………………………………2,500,000
Decrease in fair value due to harvest………………………………………………………...250,000
Milk harvested during 2020 but not yet sold………………………………………………...400,000

What amount of gain on change in fair value should be recognized for biological asset in 2020? 2,250,000

What amount of gain on change in fair value should be reported for agricultural produce in 2020? 400,000

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Proceed to Questions 21-40

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