BHB Company had the following amounts all at retail:

Beg inventory 180,000 180,000

Purchases 6,000,000 6,000,000
Purchase return 300,000 -300,000
Net markup 900,000 900,000
Net markdown 140,000 -140,000
Sales 3,600,000
Sales return 90,000
Employeee discounts 80,000
Normal shortage 130,000
Abnormal shortage 200,000 -200,000
TGAS - at retail 6,440,000
Less:
Sales 3,600,000
Sales return -90,000
Employeee discounts 80,000
Normal shortage 130,000 3,720,000

What is the ending inventory at retail? 2,720,000

IAS 41 - AGRICULTURE

1 AMOUNT
Cash 500,000
Trade and other receivables 1,500,000
Inventories 100,000
Dairy livestock - immature 50,000
Dairy livestock - mature 400,000
Property, plant and equipment, net 1,400,000
Trade and other payables 520,000
Note payable - long term 1,500,000
Share capital 1,000,000
Retained earnings - beginning 800,000
Fair value of milk produced 600,000
Gain from change in fair value 50,000
Inventories used 140,000
Staff costs 120,000
Depreciation expense 15,000
Other operating expense 190,000
Income tax expense 55,000
TOTALS

REQUIRED:
1. Determine the net income for the period?
2. Fair value of biological assets?

2 Forest Company provided the following assets in a fores plantation and farm

Freestanding trees 5,000,000

Land under trees 600,000
Roads in forest 300,000
Animals realted to recreational activities 1,000,000
Bearer plants 1,500,000
Bearer animals 2,000,000
Agricultural produce growing on bearer plants 800,000
Agriculutural produce harvested* 1,200,000
Plants with dual use 1,400,000
TOTAL
* Reported as Inventories
 REQUIRED:
1. Total amount that should be reported as biological assets?
2. Total amount to be included as PPE?

3 June Company provided the following data:

Value of biological asset at acquisition cost on Dec. 31, 2021 600,000
Fair valuattion surplus on initial recognition at FV on Dec. 31, 2021 700,000
Change in FV to Dec. 31, 2022 due to growth & price fluctuation 100,000
Decrease in FV due to harvest in 2022 90,000
Carrrying amount of the biological asset, Dec.31, 2022

REQUIRED:
a. Carrying amount of the biological asset on Dec. 31, 2022?
b. Amount of net gain from change in FV of biological asset should be reported in 2022 income statement?

4 Cute company produced milk for sale to local and national ice cream producers. The entity began operations
at the beginning of the current year by purchasing 650 milk cows for P8,000,0000

The entity provided the following for the current year:

Acquisition cost, Jan. 1 8,000,000
Change in FV due to growth and price changes 2,500,000
Decrease in FV due to harvest 250,000
Milk harvested during the year but not yet sold 400,000

REQUIRED:
a. Amount of gain on change in FV should be recognized for biological asset in the current year?
b. Amount of gain on change in FV should be reported for agricultural produce in the current year?
Inventory - Milk 400,000
Gain from agricultural produce

5 At the beginning of the current year, BHA Company had a herd of 10 2-year old animals. One animal aged 2.5 years
purchased on July 1 for P108, and one animal was born on July 1. No animals were sold or disposed of during the ye

Fair value less cost of disposal per unit:

2 year old animal on Jan. 1 100
2.5 year old animal on July 1 108
New born animal on July 1 70
2 year old animal on Dec. 31 105
2.5 year old animal on Dec. 31 111
New born animal on Dec. 31 72
3 year old animal on Dec. 31 120
0.5 year old animal on Dec. 31 80

REQUIRED:
a. FV of the biological asset on Dec. 31?
b. Amount of gain from change in FV of biological assets should be recognized in the current year?
c. Gain from change in FV due to price change?
 SOLUTION
1 2
NET INCOME FV of Biological Assets

50,000
400,000

600,000
50,000
-140,000
-120,000
-15,000
-190,000
-55,000
130,000 450,000

SOLUTION
1 2
Biological Asset PPE
5,000,000
600,000
300,000
1,000,000
1,500,000
2,000,000
800,000

1,400,000
9,200,000 3,400,000
 600,000
700,000
100,000 100,000
-90,000 -90,000
1,310,000

me statement? 10,000

began operations

2,500,000
-250,000

Biological asset
Gain from biological asset
2,250,000
400,000

400,000

e animal aged 2.5 years was

disposed of during the year.

DEC. 31
10 3 YEAR OLD 1,200.00
1 3 YEAR OLD 120.00
1 0.5 YEAR OLD 80
FV @ DEC. 31 1,400.00
FV OF 10 - 2 YEAR OLD ON JAN 1 1,000.00
ACQ. OF 1 - 3 YEAR OLD 108.00
Carrying amount of biological asset (excludes newborn) 1,108.00
FV @ DEC. 31 1,400.00
Gain from change in FV 292.00

10 2 YEAR OLD 5
1 2.5 YEAR OLD 3
1 NEW BORN 2
Gain from change in FV due toprice change

10 - 3 year old 150

1 - 3 year old 9
1 - 0.5 year old 8
new born 70
Gain from change in FV - Physical change 237
Gain from change in FV - Price change 55
Gain from change in FV 292
2,250,000
2,250,000
50
3
2
55