Scope:

S.No.
1
2
3
4
5

Guidance
Para 10
a
b
c

Para 12
Para 30,31

Presentation

Para 26

Para13,32

Presentation

Para 34,35
Para 37
 NAS 41- Agriculture
ope:
Applies to: (para 1)
Biological asset relating to agriculture, except for bearer plant;
Agricultural produce at the time of harvest; and
Government grants relating to agriculture.
Applies to produce on bearer plants as well.
~

Requirement
Recognition criteria of biological assets (all to be met)
The entity controls the assets as a result of past events
It is probable that the future economic benefits associated with the asset will flow to the entity
The fair value or cost of the asset to the entity can be measured reliably

Measurement and Presentation of Biological Asset

Each year end all biological assets should be measured at fair value less costs to sell.
If the fair value cannot be determined and is not available, then the biological asset can be measured at cost less
accumulated depreciation and impairment losses. This alternative is only allowed on initial recognition.

Biological assets are recognized in the statement of financial position as a separate class of assets falling under neith
current nor non-current at fair value less costs to sell, incorporating the consequences of all biological transformatio

A gain or loss arising on initial recognition of a biological asset at fair value less costs to sell and from a change in fai
value less costs to sell is included in profit or loss in the period in which it arises.

Measurement and Presentation of Agricultural Produce

Agricultural produce that is harvested for trading and processing activities should be measured at fair value at the d
of harvest and this amount is deemed cost for application of IAS2 to consequential inventories.

Agricultural produce should be classified as inventory in the statement of financial position and disclosed separately
either in the statement of financial position or in the notes.

Measurement and Presentation of Government Grants related to agriculture

If the government grant related to a biological asset is unconditional it should be recognized as income when the gr
receivable. If it is conditional then it should be recognized as income only when the conditions are met.
(for Govt grants measured at fair value less costs to sell)
IAS 20 does not apply to a government grant on biological assets measured at fair value less costs to sell. However,
biological asset is measured at cost less accumulated depreciation and impairment losses then IAS 20 does apply.
 Donot Apply to: (para2)
Land related to agricultural activity.
Bearer plant related to agricultural activities.
Government Grant related to bearer plants.
Intangible asset related to agricultural activities.
Right of use Asset arising from a lease of land related to agricultural activity.

Yes, Complied Not Complied

N/A Remarks
Guidance
NAS 2- Inventories
Inventories are assets:
(a) Held for sale in the ordinary course of business,
(b) In the process of production for such sale, or
(c)In the form of materials or supplies to be consumed in the production process or in the rendering of services.

Inventories can include:

• Goods purchased and held for resale
• Finished goods produced
• Work in progress being produced
• Materials and supplies awaiting use in the production process (Raw materials)

The cost of Inventories consists of all costs of:

*Purchase (Purchase price, import duties, transport and directly attributable costs of acquisition of finished goods
less trade discounts, rebates and other similar amounts)
* Costs of conversion (directly related to units of production and fixed and variable production overheads)
*Other costs incurred in bringing the inventories to their present location and conditions

The Costs that would not be included in costs of inventories are:

a) Abnormal amounts of wasted materials, labors or other production costs
b) Storage costs
c) Selling costs
d) Administrative overheads not incurred to bring inventories to their present location and conditions

Requirement
Yes, Complied Not Complied N/A Remarks
NAS