ACC124

Biological Assets
Questionnaires
Joel P. Dalabajan Jr.
Marc Louise Timbal
Jefferson Tingoban
Jay Ann Mae Eroy
Roland Hermie Bullina
1. The following are examples of Agricultural Produce EXCEPT.

a) Milk

b) Carcass

c) Pigs

d) Fruit

2. Biological Asset measure initially and at the of each reporting period

at its fair value add costs to sell.

a) True

b) False
3. It is the harvested product of the entity’s biological assets.

a. Cost to Sell

b. Agricultural Produce

c. Biological Asset

d. Agricultural Activity

4. It comprises the processes of growth, degeneration, production, and procreation

that cause qualitative or quantitative changes in a biological asset.

a. Biological Transformation

b. Biological Asset

c. Agricultural Produce

d. Agricultural Activity
5. The following are not example of Bearer Plants EXCEPT ONE:

a. Grave vines

b. Palay

c. Wheat

d. Soya

6. Biological assets are measured at

a. Lower of cost and net realizable value

b. Fair value less cost of disposal
c. Net realizable value
d. Amortized cost
7. Biological conversion and harvesting of biological assets for sales or transformation into
agricultural produce or additional biological assets is managed by an entity.

a. Agricultural Produce

b. Biological Transformation

c. Biological Asset

d. Agricultural Activity

8. Which of the following is not a biological asset?

a. Trees
b. Bearer Animals
c. Agricultural Land
d. A sheep that produces wool
9. A fish farming company, wherein the company is managing the
process of fish growth for sale are considered in Agricultural
Activity.

a. True

b. False

10. The produce or harvest from biological assets are considered

as another biological asset. Milk, tea leaves, lumber are recorded
as biological asset.

a. True

b. False
11. Joel Company provided the Following asset in forest farm and Plantation

Bearer Plants 4,400,000

Roads in the forest 205,500
Animals related to recreational 1,200,000
activities
Bearer Animals 3,000,000
Land under trees 4,000,000
Trees in the forest 6,000,000
Bonsai trees related to recreation 300,000
activities

What amount of the assets should be classified as a biological

Assets?
12. Jay-Ann company provided the following information during the current
year:

Carrying value, Jan. 1 2020 10,000,000

Decrease in fair value due to harvest 1,500,000
Increase due to purchases 2,500,000
Decrease due to sales 1,500,000
Gain arising from change in fair value less cost of disposal attributable to
price change 800,000
Gain arising from change in fair value less cost of disposal attributable to
Physical change 860,000

What is the carrying amount of the biological asset on December 31, 2020?
13. Jestoni produces egg for sale to a local market in Panabo. Jestoni began
operations on July 1, 2019, by purchasing 100 hens for P500,000. Jestoni
provides the following information related to hens:

Milking Cows:

Carrying value, Jan. 1, 2020 P 500,000

Changes in fair value due to

growth and price changes P250,000

Decrease in fair value due to harvest (100,000) 150,000

Carrying value, January 31, 2020 P 350,000

The entry to record the changes in the value of the biological asset is:
14. CHIKEN Company provided the following data:

Value of biological asset at acquisition cost on

December 31, 2018 600,000

Fair value valuation surplus on initial recognition at fair

value on December 31, 2018 700,000

Change in fair value to December 31, 2019 due to

growth and price fluctuation 100,000

Decrease in fair value due to harvest in 2019 90,000

What is the Carrying Amount of the biological assets on December 31, 2019?
15. Marcus Company provided the following assets in a forest plantation and farm:
Freestanding Trees 5,000,000

Land under trees 600,000

Roads in forest 300,000

Animals related to recreational activities 1,000,000

Bearer plants 1,500,000

Bearer animals 2,000,000

Agricultural produce growing on bearer plants 800,000

Agricultural produce harvested 1,200,000

Plants with dual use 1,400,000

What total amount should be reported as biological assets?

16. Marcus Company provided the following assets in a forest plantation and farm:
Freestanding Trees 5,000,000

Land under trees 600,000

Roads in forest 300,000

Animals related to recreational activities 1,000,000

Bearer plants 1,500,000

Bearer animals 2,000,000

Agricultural produce growing on bearer plants 800,000

Agricultural produce harvested 1,200,000

Plants with dual use 1,400,000

What total amount should be included in property, plant and equipment?

17. Boycott Company is engaged in raising dairy livestock. The entity provided the following information
during the current year:

Carrying amount on Jan. 1 500,000

Increase due to acquisitions 250,000

Gain arising from change in fair value less cost of disposal attributable to price change 200,000

Gain arising from change in fair value less cost of disposal attributable to physical change 210,000

Decrease due to sales 240,000

Decrease due to harvest 100,000

What is carrying amount of the biological asset on Dec. 31?

18. Tanya Company has a herd of 20 2-years old animals on Jan. 1, 2020. Two animal aged 2.5 years was
purchased on July 1,2020 for P150 and Two animal was born on July 1, 2020.

No animals were sold or disposed of during the year. The fair value less cost of disposal per unit is as
follows:

2-years old animal on Jan. 1 P100

2.5- years old animal on July 1 150

New born animal on July 1 50

2-years old animal on Dec. 31 170

2.5- years old animal on Dec. 31 160

New born animal on Dec. 31 60

3-years old animal on Dec. 31 200

0.5-years old animal on Dec. 31 80

What is the fair value of the biological assets on December 31?

19. Same problem on #18
Tanya Company has a herd of 20 2-years old animals on Jan. 1, 2020. Two animal aged 2.5 years was purchased on
July 1,2020 for P150 and Two animal was born on July 1, 2020.

No animals were sold or disposed of during the year. The fair value less cost of disposal per unit is as follows:

2-years old animal on Jan. 1 P100

2.5- years old animal on July 1 150

New born animal on July 1 50

2-years old animal on Dec. 31 170

2.5- years old animal on Dec. 31 160

New born animal on Dec. 31 60

3-years old animal on Dec. 31 200

0.5-years old animal on Dec. 31 80

What amount of gain from change in the fair value of biological assets should be recognize in the current year?
20. Biological Assets (Breeding biological asset, and selling the matured asset)

On January 1 2030 Maarim Company had started operating their farm, with 90 young goats and 60 matured goats kept as living stocks. The company matures the young goats and breeds
them and sells the matured goats. The young goats mature within 12 months. The following information’s are:
1/1/2030 12/31/2030 12/31/2031

Fair Value per unit (Young) 15,000 19,000 22,800

Fair Value per unit (Matured) 52,000 55,000 57,000
Cost to sell per unit:
Auctioneer’s fee 4,500 5,500 6,000
Transportation 800 1,000 1,500
the following are the movements of the young goats:

1/1/2030 12/31/2030 12/31/2031

Beg. Balance - 90 75
Acquisition 90 45 40
New born - 30 20
Transfer to mature - 90 75
Sales - - -
Closing balance 90 75 60

The following are the movements of matured goats:

1/1/2030 12/31/2030 12/31/2031

Beg. Balance - 60 90
Acquisition 60 - -
New Born - - -
Transfer from immature - 90 75
Sales - 60 90
Closing Balance 60 90 75

What is the total acquisition of biological assets on jan.1 2030