Page 11 Numbers 47, 48 and 49 Situation 1 - An entity has a herd of 150 sheep. The sheep are sheared once a quarter to harvest very valuable woo! used in designer clothes, The following information relates to the herd: Carrying amount of the herd — July 1, 2019 2,400,000 (Change in fair value due to growth and price change ue Decrease in fair value due to harvest he Woo! harvested during the first quarter 300,000 ‘The wool was sold for P650,000, i sale. The asset's Situation 2 - On December 31, 2019, an entity classified a noncurrent asset as held for sa ‘measurement was P4,700,000. On December 31, 2020, the entity decided not to sell the asset bu to continu using it. On such dats, it was determined that the value in use and fair valu less cos of dispose ‘were P4,000,000 and P4,300,000 respectively. If the asset was never classified as held for sale carying amount would have been P4,400,000. 47, What amount of biological assets should be recognized on December 31,2019? a. 2,600,000 '. 2,850,000 & 650,000 4. 2,400,000 48, What isthe net income to be reported ftom the agricultural activity? 450,000 350,000 '50,000 800,000 eeee 49. What is the measurement of the noncurrent asset on December 31, 20207 4,400,000 . 4'700,000 «. 4,000,000 4 4,300,000 Numbers $0 t0 70 50, What statement of financial position is prepared atthe date of transition to PFRS for SME? Originating statement of financial position Closing statement of financial position ‘c. Opening statement of financial position 4d. Provisional statement of financial postion SL. The line items in the statement of financial position of an SME included all, except ‘a. Deferred tax liabilities b. Financial liabilities Total liabilities ina disposal group classified as held for sale 4d. Trade and other payables 52. Which of the following may be considered an SME inthe Philippines? ‘2 A bank with tol assets of P100,000,000 '. An insurance company with total Iabilities of P230,000,000. ¢. A manufacturing company with total assets of PS00,000,000. 4. Arretail company with total liabilities of P200,000,000.