GROUP MEMBERS:

ABANGOLAN
ARANCES
ASENJO
CABAHUG
MAGDALES
MONTEIRO
URBIZTONDO
VILLACASTIN
THEORIE
S
1. Which of the following is a biological asset?
a. Carcass
b. Milk
c. Eggs
d. Oil palms

2. Which of the following is not a biological

asset?
a. Tree
b. Egg
c. Pig
d. Cow
3. 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
4. This is the detachment of produce from a
biological asset.
a. Agricultural produce
b. Harvest
c. Cessation
d. Bearing
5. 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
6. 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
7. Under International Financial Reporting
Standards (IFRS), agricultural activity results in
which of the following types of assets?
I. Agricultural produce
II. Biological assets
III. Natural breeding of animals in game parts and zoos.

a. I only.
b. II only.
c. I and II.
d. I, II and 3.
8. Biological transformation results from asset changes
through all of the following, EXCEPT?
a. Growth
b. Degeneration
c. Procreation
d. Production of agricultural produce

9. Agricultural produce is?

a. Harvested from biological assets.
b. Valued at the time of harvest at its cost to produce.
c. Valued at each reporting period at its fair value less costs to sell.
d. All of the choices are correct regarding agricultural produce
10. Biological assets are initially
measured at its?
a. Fair Value
b. Fair Value – Cost to sell
c. Fair Value – Cost to sell at the point of harvest
d. Fair Value – Cost to sell at the reporting period
PROBLE
M
1. Defsoul Dairy produces milk to sell to local and national ice cream
producers. Defsoul Dairy began operations on January 1, 2020 by
purchasing 751 milk cows for 2,267,000. The company controller had the
following information available at year end relating to the cows:
 
Milking cows
Carrying value, January1, 2020 2,267,000
Change in fair value due to growth and price changes 474,000
Decrease in fair value due to harvest (78,000)
Milk harvested during 2015 but not yet sold 68,000
 
On Defsoul Dairy's income statement for the year ending December 31,
2020, what amount of unrealized gain on biological assets will be reported?

a. -0-
b. 356,000
c. 396,000
d. 68,900
2. KOOGI Company provided the following data:

Value of Biological asset at acquisition cost on Dec. 31, 2019 400,000

Fair Value valuation surplus on initial recognition at fair value 800,000
on Dec. 31, 2019
Change in Fair Value to Dec. 31, 2020 due to Growth and 150,000
price fluctuation
Decrease in Fair Value due to harvest in 2020 115,000

What is the carrying amount of the biological assets on December 31, 2020?

a. 1,235,000
b. 1,245,000
c. 1,310,000
d. 1,305,000
3. CLIETZ Company provided the following assets in a forest plantation and
farm:

Freestanding trees 6,000,000

Land under trees 250,000
Road in forests 200,000
Bearer plants 3,000,000
Bearer animals 3,500,000

What amount of the assets should be classified as biological assets?

a. 12,500,000
b. 129,500,000
c. 6,506,000
d. 9,500,000
4. CS Company provided the following data:

Value of biological asset at acquisition at fair value on 800,000

December 31, 2019
Fair value valuation surplus on initial recognition at fair 1,000,000
value on December 31, 2019
Change in fair value to December 31, 2020 due to 500,000
growth and price fluctuation
Decrease in fair value due to harvest in 2020 150,000

What is the carrying amount of biological assets on December 31, 2020?

a. 1,800,000
b. 2,150,000
c. 650,000
d. 2,450,000
5. Mega Company is engaged to raising dairy livestock. The entity provided
the
following information during the current year.

Carrying amount on January 1 5,000,000

Increase due to purchases 2,000,000
Gain arising from change in fair value less cost 400,000
Attributable to physical change 600,000
Decrease due to sales 850,000
Decrease due to harvest 200,000
 
What is the carrying amount of the biological asset on December 31?

a. 6,950,000
b. 6,000,000
c. 8,000,000
d. 7,150,000
6. Brookside Farm is engaged in raising dairy livestock. The following
information pertains to Brookside on December 31, 2019:

Price of Livestock in the farms 5,300,000

Price of livestock in the city market 5,500,000
Estimated Brokers’ commission 120,000
Transport cost to bring the livestock to 80,000
the city market

At what amount should the biological assets be presented in the December

31, 2019 SFP?

a. 5,000,000
b. 5,200,000
c. 5,180,000
d. 4,900,000
7. Dub Dairy produces milk to sell to local and national ice cream producers.
Dub Dairy began operations on January 1, 2015 by purchasing 840 milk
cows for 1,176,000. The company controller had the following information
available at year end relating to the cows:
Milking cows
Carrying value, January1, 2015 1,176,000
Change in fair value due to growth and price changes 365,000
Decrease in fair value due to harvest (42,000)
Milk harvested during 2015 54,000

At December 31, 2015, what is the value of the milking cows on Dub
Dairy’s statement of financial position?

a. 1,176,000
b. 1,541,000
c. 1,134,000
d. 1,499,000
8. Flank Company provided the following information for the current year:
 
Cash 600,000
Trade and other receivables 1,400,000
Inventories 200,000
Dairy livestock-immature 40,000
Dairy livestock- mature 500,000
Note payable 1,500,000
Share capital 2,000,000
Fair value of milk produced 600,000
 
What is the fair value of biological asset at the year end?

A.550,000
b. 540,000
c. 1,140,000
d. 1,410,000
9. Pork herbs Corp. purchased a forest plantation at a lump-sum amount of
P6,500,000. This plantation includes land, fences and trees and plants. The
fair value of the land and fences are determinable which is P4,000,000 and
P2,000,000, respectively.

There is no market value available for the trees and plants

How much is to be reported as biological assets in Pork herbs Corp’s
balance sheet?

a. 450,000
b. 8,500,000
c. 4,000,000
d. 500,000
10. April Uy purchased 1,000 alpaca on January 1, 2020. These alpacas will be
sheared semi-annually, and their wool sold to specialty clothing manufacturers. The
alpaca was purchased for 148,000. During 2020, the change in fair value due to
growth and price changes is 9,400, the wool harvested but not yet sold is valued at net
realizable value of 18,000, and the change in fair value due to harvest is 1,150. In
April Uy income statement for the year ending December 31, 2020, what amount of
unrealized gain on biological assets will be reported?

a. 26,250
b. 27,400
c. 9,400
d. 8,250
THANK YOU 