PAS 41  

Agriculture

SHORT QUIZ:
1. Which of the following is most likely an acceptable measurement for agricultural produce
Initial measurement Subsequent measurement
a. fair value less costs to sell cost
b. fair value less costs to sell lower of cost and NRV
c. fair value lower of cost and FV less costs to sell
d. fair value less costs to sell fair value less costs to sell

2. Biological assets and agricultural produce are recognized when all of the following are present
except
a. control
b. probable future economic benefits
c. probable future event
d. fair value or cost can be measured reliably

3. Which of the following statements is incorrect regarding the accounting for biological assets?
a. Agricultural land used in growing agricultural produce can never qualify for recognition as
biological asset.
b. Biological asset is living animal or plant.
c. Agricultural produce is harvested product from a biological asset before any processing.
d. PAS 41 is used to account for both consumable and bearer plants.

4. Which of the following is considered an agricultural produce?

a. eggs to be hatched into chicks
b. condensed milk
c. dairy cow
d. felled trees

5. Which of the following is considered an inventory rather than an agricultural produce at the
point of harvest?
a. Harvested cotton
b. Harvested cane
c. Tea
d. Picked leaves

“A man who asks is a fool for five minutes. A man who never asks is a fool for
life.”
- Chinese Proverb