Oct2023 Topic 2 Mfrs 141 Agriculture Notes by Yusnaliza Hamid &

FAR320
Topic 2
Agriculture-Biological Assets
(MFRS 141: AGRICULTURE)
PREPARED BY:
YUSNALIZA HAMID
NOOR SAATILA MOHD ISA
UiTM PERAK
By the end of this topic, students
should have the ability to:
• Define Agriculture-biological assets.
• Discuss the initial measurement of agriculture-
biological assets.
2 TOPIC • Discuss the subsequent measurement of
OUTCOME agriculture-biological assets.
(TO) • Prepare the relevant accounting entries and
disclosure in the statement of profit or loss and
other comprehensive income and statement of
financial position
Yusnaliza & Noor Saatila - UiTM Perak
2
OVERVIEW
3
✓ MFRS 141 Agriculture sets out 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
Yusnaliza & Noor Saatila - UiTM Perak 3

4 MFRS 141: AGRICULTURE
SALE
BIOLOGICAL
TRANSFORMATION
What is AGRICULTURAL and
ACTIVITY? conversion into
AGRICULTURAL
The management by an HARVEST of PRODUCE
entity (managed BIOLOGICAL ASSET
activity)of for
conversion
into
ADDITIONAL
BIOLOGICAL
ASSETS
5 AGRICULTURE-RELATED DEFINITIONS
It is the management by an entity of the
biological transformation and harvest of
Agricultural activity biological assets for SALE, into
AGRICULTURAL PRODUCE, or into
ADDITIONAL BIOLOGICAL ASSETS.
It comprises the process of growth,

Biological degeneration, production, and procreation
transformation that cause qualitative or quantitative changes
in a biological asset.
It is a living animal or plant
Biological asset
It is the harvested produce of the entity’s

Agricultural produce
Yusnaliza & Noor Saatila - UiTM Perak biological assets
5
6 AGRICULTURE-RELATED DEFINITIONS
Harvest It is the detachment of produce from a biological asset or
cessation of a biological asset’s life process.
A group of
It is an aggregation of similar living animals or plants.
biological assets
are the incremental costs directly attributable to the disposal
Costs to sell
of an asset, excluding finance costs and income taxes.
MFRS 141 : 44
Consumable biological assets are those that are to be harvested as

agricultural produce or sold as biological assets. Examples of
consumable biological assets are livestock intended for the
production of meat, livestock held for sale, fish in farms, crops such
as maize and wheat, produce on a bearer plant and trees being
grown for lumber.
EXAMPLES OF
AGRICULTURAL
ACTIVITY

Raising livestock
& poultry

8
Fish and
Prawn
Farming
9
9
Stud farms (e.g: horse or cattle breeding)

Forestry

Cultivating vineyards,
orchards or plantations

12
Floriculture
13
14 APPLICABLE • Biological assets, except for bearer plants;
to • Agricultural produce at the point of harvest; and
agricultural • Government grants
activities • It does apply to produce growing on bearer plants
related to
SCOPE • Land related to agricultural activity (see MFRS 116

14 and MRFS 140)
• Bearer plants related to agricultural activity (see
MFRS 116). However, this standard applies to the
NOT produce on those bearer plants.
APPLICABLE • Government grants related to bearer plants (see
to MFRS 120).
• Intangible assets related to agricultural activity (see
MFRS 138).

they might be cut down
15
What are BEARER PLANTS? and sold as scrap, for
example, for use as
firewood. Such
1. is used in the production or supply of incidental scrap sales
agricultural produce; (examples include fruit would not prevent the
trees, oil palms, nut trees, grape vines, tea plant from satisfying the
bushes, rubber trees and sugar canes. ) definition of a bearer
plant.
a living 2. is expected to bear produce for more than

plant that: one period (> 12 months) ; and
kita kutip hasil tani lebin dari setahun
3. has a remote likelihood of being sold as

agricultural produce, except for incidental
scrap sales
ALL of the above criteria need to be MET for a biological

asset to be considered a BEARER PLANT.
15
plants that have a dual use,
What are NOT Bearer Plants?

that is, both bearing produce
16 and the plant itself being
sold as either a living plant or
agricultural produce
(a) plants cultivated to be harvested as (beyond incidental scrap
agricultural produce (for example, trees grown for sales), will not meet the
use as lumber); definition of Bearrer Plants
(b) plants cultivated to produce agricultural

produce when there is more than a remote
likelihood that the entity will also harvest and sell
NOT bearer the plant as agricultural produce, other than as
incidental scrap sales (for example, trees that are
plants: cultivated both for their fruit and their lumber);
and
(c) annual crops (for example, paddy, maize and

wheat).
Produce growing on bearer plants is a biological asset.

16
semakin tua= transformation
17 BIOLOGICAL TRANSFORMATION MFRS 141 : 7

(a)&(b)
Biological transformation results in the following types of outcomes:
(a) ASSETS CHANGES THROUGH

process of: OR (b) GENERATION OF NEW ASSETS
GROWTH DEGENERATION PROCREATION

PRODUCTION
An increase in QUANTITY A decrease in Creation of new of agricultural produce

and improvements in the QUANTITY additional living plants such as latex, wool tea
QUALITY of living animals or and animals. leaf and milk
or plants. E.g in size & deterioration
weight in QUALITY of in QUANTITY , such
an animal or as change in weight,
in QUALITY, such as plant. E.g, length, number of
increase in fibre, reduction in buds
protein content, output due to
ripeness, density age or disease 17
BIOLOGICAL TRANSFORMATION
Yusnaliza & Noor Saatila - UiTM Perak 18 18

19 BIOLOGICAL ASSET AND AGRICULTURAL PRODUCE
Biological asset Agricultural produce
It is a living animal or plant It is the harvested produce of the entity’s
biological assets
The growing tea leaves on the tea On plucking (harvesting), the green
bush, yet to be plucked as of a leaves plucked would be the
reporting date are biological assets as agricultural produce
it is still attached to the tea bush.
NB: Also, produce growing on a bearer plant is a biological asset, such as tea leaves, and
19
coffee seeds.
HARVEST
It is the detachment of produce from a biological asset (e.g., when
dairy cattle is milked and mangos are plucked) or cessation of a
biological asset’s life process (e.g., when cow is slaughtered) .
20
Biological assets Agricultural Produce Products that are
(a living animal or plant) (the harvested product of the the result of
21 entity’s biological assets)
processing after
harvest
21
22
Distinction between
Biological assets,
Agricultural Produce and
Products that are the
result of processing after
harvest (as per MFRS
141)
22
the entity CONTROLS the
asset as a result of past
events;
An entity shall
recognise a
RECOGNITION biological it is PROBABLE that FUTURE
asset or ECONOMIC BENEFITS
23 agricultural associated with the asset
produce will flow to the entity; and
when, and
only when: the FAIR VALUE OR COST of
the asset CAN BE
MEASURED RELIABLY.
23
24 RECOGNITION
Initial Recognition
Biological Assets and Agricultural Produce are only recognised when:
The entity It is PROBALE THE FAIR VALUE

CONTROLS FUTURE ECONOMIC or the COST of
BENEFITS will flow assets CAN BE
to the entity MEASURED
Control can be RELIABLY
over the asset as a evidenced through
result of past events Economic benefits
ownership and may be in the form
other legal of physical growth
arrangements
In agricultural activity, CONTROL may be evidenced by, for example,

MFRS 141 : 11 legal ownership of cattle and the branding or otherwise marking of the
cattle on acquisition, birth, or weaning. The FUTURE BENEFITS are
normally assessed by measuring the significant physical attributes. 24
Example 1
Marini Bhd is in the business of breeding fishes and planting
durian for sale. Currently there are 10 ponds to breed the fishes.
The company also owns the following items that are used to
manage the breeding of the fishes:
Assets : A unit of tractor for pond management
Acquired patent for pond management
Required: 25
Briefly explain the classification of the items. (State the relevant
MFRSs.)
i. Fishes
ii. Ponds
iii. Tractor
iv. Acquired patent
v. Durian trees
Source: UiTM/FAR320: Group Assignment (amended) 25

26 Answer 1
ITEMS CLASSIFICATION
i Fishes Fishes can be recognized as biological assets according to MFRS141 Agriculture
because it is it is living animal used in agricultural activity (breeding fishes for
sale)
ii Ponds Ponds can be recognized as an item of PPE according to MFRS116 because it
used in production of goods and services (involves in breeding activity)
iii Tractor Tractor can be recognized as an item of PPE according to MFRS116 because
it used in production of goods and services (involves in pond management)
iv Acquired patent Acquired patent can be recognized as Intangible Asset according to MFRS138
because it is an identifiable non monetary long term asset without physical
substance and it is involves in pond management.
v Durian trees Durian trees are living plants, can be recognized as PPE according to MFRS116
as it is bearer plant used in the production or supply of agricultural produce.
Durian trees are expected to bear durian fruits (agricultural produce) for more
than one year
26
MEASUREMENT
FAIR VALUE of
a biological
asset and BIOLOGICAL ASSET
agricultural
produce is
It shall be measured on initial recognition (ON
based on its
INITIAL MEASUREMENT) and at the end of each
present reporting period (ON SUBSEQUENT
location and MEASUREMENT) at its fair value less costs to sell
27 condition (FVLCTS)
In general MFRS
141 assumes Where the fair value cannot be measured
reliably initially, as there is no ACTIVE MARKET,
that FAIR VALUE
the asset is measured at COST less any
in an active
accumulated depreciation less any impairment
market can be losses
measured
reliably
27
28
MEASUREMENT
IMPORTANT Point to Note:
Produce growing on a plant
AGRICULTURAL PRODUCE
that is yet to be harvested is
known as a biological asset. INITIALLY MEASURED at its fair value less
For example, mature two leaves estimated costs to sell (point-of-sale-cost).
and a bud on a tea bush that
Agricultural produce harvested from an
are yet to be plucked entity’s biological assets (e.g fruits
(harvested) are identified as plucked or milk harvested from dairy
biological asset. cow) shall be measured at its fair value
Once they are harvested, such less costs to sell at the point of harvest.
leaves are identified as
agricultural produce Such measurement is the cost at that date
when applying MFRS 102 Inventories or
applying MFRS 141 Agriculture another applicable Standard.
28
29
MEASUREMENT
COSTS TO SELL : POINT-OF–SALE-COST
❑Costs that are necessary for a sale to occur but that otherwise
would not arise, including costs such as:
✓ commissions to brokers and dealers ( e.g. auctioneer fees),
✓ levies by regulatory agencies and commodity exchanges, and
✓ transfer taxes and duties.
❑ Costs that are incurred to get the assets to the market, such as
transport and other costs are excluded from ‘costs to sell’ since
they are deducted in determining the fair values .
29
30 MEASUREMENT
SUBSEQUENT EXPENDITURE
❑ The standard does not prescribe the accounting treatment for subsequent
expenditure for agricultural activity, either to capitalize them or to
expense off. Thus, MFRS 41 Agriculture is silent on this ISSUE.
❑ The entities need to apply their professional JUDGEMENTS to decide an
accounting policy CHOICE that best suits their entities
❑ The Basis for Conclusion related to MFRS 141 highlighted that it is not
necessary to make the rules about the subsequent expenditures in
agricultural activities, because biological assets need to be re-measured to
their fair value less cost to sell with all fair value changes in profit or loss.
Hence, the net effect in profit or loss is still the same but the presentation is
different .
30
31 MEASUREMENT
❑ Basically, there are 2 options : Option 1 : is very
1 Expensed off all For example: simple and very easy
way of doing the
subsequent expenditure If it just helps maintaining
things. However it is
in profit or loss directly; the biological assets not ideal, because in
OR this case, entities
https://www.ifrsbox.com would show big
/MFRS-41-subsequent- expenses in their
expenditures- 2 Capitalize the For example: profit or loss
agriculture/ statement
subsequent expenditure If it helps to increase or
and includes in the enhance the yield or Option 2 :
carrying value of the future outcome of the Difficulties might be
biological assets biological assets. encountered in
defining what
should be
capitalised.
MEASUREMENT
 Subsequent costs incurred for agricultural activity may
Note:
generally includes:
In practical
▪ Feeding ▪ Slaughtering Costs
scenarios, it is
common to see that ▪ Veterinary Services ▪ Nurturing
entities generally ▪ Routine vaccinations ▪ Harvesting
32 recognise these
▪ Planting ▪ Farm labour and supervision
costs as an EXPENSE
IN THE PERIOD ▪ Weeding ▪ Chemicals and other supplies
INCURRED (eg, as ▪ Irrigation, ▪ Depreciation of PPE engaged
‘costs of production’) ▪ Fertilisation
in agricultural activity
▪ Pesticides
▪ Other operating expenses
▪ Food supplements

32
33 MEASUREMENT
Factors to consider in determining FAIR VALUE
a. Grouping them according to MFRS 13 defines fair value as the
their significant attributes like price that would be received to sell
an asset or paid to transfer a liability
age group or quality. in an orderly transaction between
b. Fair value is determined market participants at the
measurement date
independently
c. Existence of active market For examples:
❑ The existence of active market for
(high volume transactions)
green tea leaves could determine
d. No active market the potential fair value of the
underlying biological asset of the
e. No active market in present leaves on the tea bush.
condition of the asset ❑ An active market for rubber tree
timber would determine its fair
value

34
MEASUREMENT
Changes in Fair Values less Cost to Sell
GAINS AND LOSSES
due to:
1. PHYSICAL CHANGES 2. PRICE CHANGES

(Due to growth of the biological asset) (Due to movement in market price)
Fair value at the end of the period (31.12.20x2)

Fair value at the beginning of the period
with different physical characteristics re-
(1.1.20X2) [or most recent previous period]
measured at the same date : end of the period
with same physical characteristics re-
(31.12.20X2)
measured at different date, the end of the
period (31.12.20X2)
Different physical Same date :
characteristics end of period
Different Same physical characteristics
E.g: Change in age,
date E,g., Same age, weight etc
weight, length etc
34
35
MEASUREMENT
Gains and Losses
Biological Asset
❑ Gain or loss on biological asset will arise
due to:
1. Changes in fair values (less costs to
sell) between reporting dates, and
2. Initial recognition of a biological asset at
fair value (less costs to sell), for example,
when a calf is born.
❑ All these gains and losses are recognised
as income and expenses respectively in the
statement of profit or loss for the period. 35
36 MEASUREMENT
Gains and Losses
Agricultural Produce
❑ Gain or loss will arise on initial recognition of the produce.
❑ The gain or loss is the fair value less costs to sell (point of sale costs). The
gain or loss is recognised in the statement of profit or loss in the period of
harvest.
❑ For examples :
✓ when rubber trees are tapped and harvested latex are collected
✓ When guavas and mangos are plucked
✓ When dairy cattle are milked
A reconciliation of changes in the carrying amount of biological assets between
the beginning and the end of the period is required under MFRS 141 para 50.
36
37 MEASUREMENT
When living animal is born
CHANGES Upon Initial

Recognised as Gain or Loss in the SOPL.
IN FAIR Recognition
Journal Entries : Gain on initial recognition
VALUES Dr Biological assets/Agricultural produce
due to Cr Gain on FV Change- SOPL
1) Physical
Changes in size, age, quality etc
Changes
Between
2) Price reporting dates
Recognised as Gain or Loss in the SOPL
Changes (on Subsequent
Journal Entries : Loss on Fair Value Change
Measurement
Dr Loss on FV Change- SOPL
Cr Biological assets/Agricultural produce
37
38
MEASUREMENT OF BEARER PLANT
BEFORE MATURITY, bearer plants must be
The measured at COST, similar to the accounting
measurement treatment for a self-constructed property, plant
requirements and equipment before it is available for use; and
for bearer
plants should
be in
accordance AFTER THE BEARER PLANT IS MATURE, entities have a
with MFRS 116 policy choice to measure the bearer plants using
PPE as follows : either the cost model or the revaluation model

38
39 Example 2: Recognition and Measurement
Danish Dairy Farm Bhd cultivates cattle as livestock for meat and sells the
cattle to slaughterhouses. At 31 December 20X0 the fair value less costs to
sell of the entity’s livestock is RM10,000.
In 20X1 eight calves were born and the entity sold 10 heifers for RM200
each, incurring selling costs of RM10 per heifer. The fair value less costs to
sell of the herd as at 31 December 20X1 is RM14,000 ( including the gain on
initial recognition of RM1,200 re-measured on 31.12.20x1 for similar eight
new-born calves)
For the year ended 31.12.20x1, you are required to prepare:

a. Relevant journal entries to record the above transactions
b. 3 column ledger for Biological Asset
c. Extract of SOPL (showing net profit from calves farming)
d. Extract of SOFP (showing only Non-current assets)
Source: Ammended Examples from Supporting Material for the IFRS for SMEs Standard (2015) :Module 34—Specialised Activities
40
Answer 2 (a) : Journal Entries
FYE 31.12.20x1 Particulars RM RM
1. DR Biological assets 1,200
CR Gain on Fair value Change – SOPL: initial 1,200
recognition
To recognise gain on initial recognition
2. DR Selling Expenses-SOPL (RM10 x 10) 100

DR Cash [(RM200-RM10)x 10] 1,900
CR Revenue 2000
To recognise the sale of the heifers.

41
Answer 2 (a) : Journal Entries
FYE 31.12.20x1 Particulars RM RM
3. DR Cost of sales - SOPL 1900
CR Biological assets -heifers 1900
To recognise cost of sale
4. DR Biological assets 4,700

CR Gain on Fair value Change - SOPL: 4,700
subsequent measurement
To recognise the Gain on fair value
change of herd.

42 Answer 2 (b)
DEBIT CREDIT Balance
Date Biological asset
(RM) (RM) (RM)
1.1.20X1 Balance as of 1.1.20x1 10,000 10,000
31.12.20x1 Cost of Sales-SOPL 1,900 8,100

31.12.20x1 Gain on Fair value change- initial 1,200 9,300
recognition (calves born) - SOPL: Income
31.12.20x1 Gain on Fair value Change-SOPL: 4,700 14,000
Income
Bal c/d- To SOFP
Note:
the entity measures the biological
assets - herd including the eight
calves born during the period at Fair
value less cost to sell of RM14,000
43 Answer 2 c : Extracts of SOPL
DANISH DAIRY FARM BHD

STATEMENT OF PROFIT OR LOSS
FOR THE YEAR ENDED 31.12.20X1
RM
Revenue 2,000
Other Income: Gain on Fair value Change 5,900
Cost of sales - SOPL (1,900)
Selling Expenses-SOPL (100)
Net Profit from Calves farming 5,900

44 Answer 2 d : Extracts of SOFP
DANISH DAIRY FARM BHD

STATEMENT OF FINANCIAL POSITION AS AT 31.12.20X1
Non –Current Assets RM
Biological assets (at FVLCTS) 14,000

45 Example 3: Recognition and Measurement
Marsya Bhd bought sheep at a cost of RM60,000 on 1 January
20x8. The acquired sheep is engaged in a sheep farming and
is reared for wool. On 31 December 20x8, similar sheep had a
fair value of RM67,500. The cost to sell is RM3,400.
Required:
i. Explain the appropriate accounting treatment of the
sheep for the year ended 31 December 20x8.
ii. Prepare the journal entries to record the above
transactions
Yusnaliza & Noor Saatila - UiTM Perak Source: UiTM/FAR320: Group Assignment (amended) 45
46 Answer 3: Recognition and Measurement
i) On 1 January 20x8, the sheep is recognised a biological asset according to MFRS
141 Agriculture as it is a living animal reared for wool in engaged in a sheep farming
(agricultural activity). It is initially measured at a cost of RM120,000.
At the end of reporting period of 31 December 20x8, there was a gain in changes of
fair value of biological asset amounted to RM4,100 [(67,500-3,400)- 60,000],
recognised as an income in SOPL. On 31 December 2018 the carrying amount of
the biological asset shown in the SOFP is RM64,100.
i) FYE 31 December 20x8

Dr Biological asset 60,000
Cr Bank/ Payables 60,000
Dr Biological asset 4,100
Cr SOPL- gain in changes in fair value – other income 4.100

47 PRESENTATION
Biological assets and agricultural produce should be presented in the SOFP as
separate line items under the following headings:
NON-CURRENT Remarks:
ASSETS
Property, Plant and would include bearer plants
Equipment
Biological assets to be harvested more than 12 months from the reporting
date, livestock to be held for more than 12 months and trees
cultivated for lumber and fruit.
CURRENT ASSETS Remarks:
Biological assets to be harvested within 12 months of reporting date, livestock
to be slaughtered within 12 months and annual crops eg
wheat, maize
Inventories includes the inventories produced from agricultural
produce eg the tea to be sold, produced from the tea leaves
48 DISCLOSURE
Disclosure requirements in MFRS 141 include:
• aggregate gain or loss from the initial recognition of biological assets and agricultural
produce and the change in fair value less costs to sell during the period* [MFRS 141:40]
• description of an entity's biological assets, by broad group [MFRS 141:41]
• description of the nature of an entity's activities with each group of biological assets and
non-financial measures or estimates of physical quantities of output during the period and
assets on hand at the end of the period [MFRS 141 :46]
• information about biological assets whose title is restricted or that are pledged as security
[MFRS 141:49]
• commitments for development or acquisition of biological assets [MFRS 41.49]
• financial risk management strategies [MFRS 141:49]
• reconciliation of changes in the carrying amount of biological assets, showing separately
changes in value, purchases, sales, harvesting, business combinations, and foreign exchange
differences [MFRS 141:50]

49
OTHER RELATED ISSUES

49
50 GOVERNMENT GRANT
Government grants received in relation to a biological
assets are measured at fair value less costs to sell
UNCONDITIONAL GOVERNMENT GRANT CONDITIONAL GOVERNMENT GRANT

❖ An unconditional government grant ❖ If the government grants are received before
shall be recognised in profit or loss conditions are met it is treated as LIABILITY.
as INCOME when the government ❖ The grant is recognized as an INCOME when
grant becomes receivable. there is reasonable assurance that the
conditions are met.
Journal Entries: Journal Entries:

Dr Biological Asset Dr Biological Asset
Cr Government grant INCOME-SOPL Cr Unearned Government grant – LIABILITY -SOFP

51 Example 4 : Accounting For Bearer Plants
Yus Plantation Bhd is engaged in the production of coconut water concentrate, virgin coconut oil, and coconut
milk. On January 2, 20x6, the entity purchase a 15-hectare coconut plantation in Bagan Datoh, Perak. The costs
associated with this acquisition are as follows:
Land RM10,000 000
Coconut tree RM5,000,000
TOTAL RM15,000,000
It is expected that these coconut trees will provide fruits for 12 years. On the reporting date (December 31, 20x6)
the company conducted an assessment and found no any signs of deterioration in value. The company uses Cost
Model on its subsequent measurement of PPE.
Required:
a. Explain the classification of coconut tree.
b. Show relevant journal entries and extract of Statement of Financial Position to account or both the land
coconut trees during 20x6?
Source: http://theaudituniverse.blogspot.com/2016/04/accounting-for-bearer-plants.html
51
52 Answer 4 (a)
Coconut Trees
The coconut tree is a living plant that meets the definition of bearer
plants as per MFRS 116. This is because the coconut tree:
a) is used in the production or supply of agricultural produce ;
production of coconut water concentrate, virgin coconut oil, and
coconut milk ;
b) is expected to bear produce for more than one period: will
provide fruits for 12 years ; and
c) has a remote likelihood of being sold as agricultural
produce.
Therefore, on 2 January 20x6, coconut tree will be recognized as PPE
and is measured initially at COST at RM5,000,000 .

52
53 Answer 4 (a)

54 Answer 4 (c)
Statement of Financial Position as at 31 December 20x6 (Extract)
Non-Current Assets RM
Property, Plant and equipment 14,583,333
Workings

54
55 CONSUMABLE OR BEARER ASSETS?
Biological assets fall into the following main categories:

❑ plants or animals; and
❑ consumable or bearer assets.
❑ Consumable assets are those which are to be harvested as agricultural produce

or sold as biological assets – that is, they will be consumed (for example wheat and
cattle for beef).
❑ Bearer assets are those which bear produce over their productive lives, which
exceeds one period. For example, grape vines, where the vine is the bearer asset
and the grapes are produce and dairy cows, where the cow is the bearer asset and
milk is the produce.
55

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FAR320

Yusnaliza & Noor Saatila - UiTM Perak

Yusnaliza & Noor Saatila - UiTM Perak 3

It comprises the process of growth,

It is the harvested produce of the entity’s

Consumable biological assets are those that are to be harvested as

Yusnaliza & Noor Saatila - UiTM Perak

Yusnaliza & Noor Saatila - UiTM Perak

Yusnaliza & Noor Saatila - UiTM Perak

Yusnaliza & Noor Saatila - UiTM Perak 10

Yusnaliza & Noor Saatila - UiTM Perak 11

Yusnaliza & Noor Saatila - UiTM Perak

Yusnaliza & Noor Saatila - UiTM Perak

SCOPE • Land related to agricultural activity (see MFRS 116

Yusnaliza & Noor Saatila - UiTM Perak 14

a living 2. is expected to bear produce for more than

3. has a remote likelihood of being sold as

ALL of the above criteria need to be MET for a biological

What are NOT Bearer Plants?

(b) plants cultivated to produce agricultural

(c) annual crops (for example, paddy, maize and

Produce growing on bearer plants is a biological asset.

17 BIOLOGICAL TRANSFORMATION MFRS 141 : 7

Biological transformation results in the following types of outcomes:

(a) ASSETS CHANGES THROUGH

GROWTH DEGENERATION PROCREATION

An increase in QUANTITY A decrease in Creation of new of agricultural produce

Yusnaliza & Noor Saatila - UiTM Perak 18 18

Yusnaliza & Noor Saatila - UiTM Perak

The entity It is PROBALE THE FAIR VALUE

In agricultural activity, CONTROL may be evidenced by, for example,

Source: UiTM/FAR320: Group Assignment (amended) 25

Yusnaliza & Noor Saatila - UiTM Perak

Yusnaliza & Noor Saatila - UiTM Perak 33

1. PHYSICAL CHANGES 2. PRICE CHANGES

Fair value at the end of the period (31.12.20x2)

CHANGES Upon Initial

Yusnaliza & Noor Saatila - UiTM Perak

For the year ended 31.12.20x1, you are required to prepare:

2. DR Selling Expenses-SOPL (RM10 x 10) 100

Yusnaliza & Noor Saatila - UiTM Perak 40

4. DR Biological assets 4,700

Yusnaliza & Noor Saatila - UiTM Perak 41

31.12.20x1 Cost of Sales-SOPL 1,900 8,100

DANISH DAIRY FARM BHD

Yusnaliza & Noor Saatila - UiTM Perak 43

DANISH DAIRY FARM BHD

Yusnaliza & Noor Saatila - UiTM Perak 44

i) FYE 31 December 20x8

Yusnaliza & Noor Saatila - UiTM Perak 46

Yusnaliza & Noor Saatila - UiTM Perak 48

OTHER RELATED ISSUES

Yusnaliza & Noor Saatila - UiTM Perak

UNCONDITIONAL GOVERNMENT GRANT CONDITIONAL GOVERNMENT GRANT

Journal Entries: Journal Entries:

Yusnaliza & Noor Saatila - UiTM Perak 50

Yusnaliza & Noor Saatila - UiTM Perak

Yusnaliza & Noor Saatila - UiTM Perak

Yusnaliza & Noor Saatila - UiTM Perak

Yusnaliza & Noor Saatila - UiTM Perak

Biological assets fall into the following main categories:

❑ Consumable assets are those which are to be harvested as agricultural produce

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Oct2023 Topic 2 Mfrs 141 Agriculture Notes by Yusnaliza Hamid &

Oct2023 Topic 2 Mfrs 141 Agriculture Notes by Yusnaliza Hamid &