fp CHAPTER 13 plOLOGICAL ASSET TECHNICAL KNOWLEDGE To define biological asset, agricultural produce and agricultural activity. To know the recognition and measurement of biological asset and agricultural produce. . Tounderstand the recognition of bearer plants as property, plant and equipment. To understand the recognition of bearer animals. 363DEFINITION OF TERMS Biological assets are living animals ‘and living plants. Agricultural produce is the harvested product of an entity, biological assets. Harvest is the detachment of produce from a biological asset or the cessation of a biological asset's life processes. Examples of biological assets The following table provides examples of biological asset, agricultural produce and products that are the result of processing after harvest. Biological asset Agricultural Product produce after harvest i. Sheep Wool Yarn, carpet 2. Treesin plantation forest Felled trees Logs, lumber 3. Sugarcane plant Harvested cane Sugar 4. Dairy cattle Milk Cheese 5. Pigs Carcass Sausage, cured ham 6. Tobacco plant : Pickedleaves Cured tobacco Agricultural activity or simply "agriculture" Agricultural activity is the management by an entity of the biological transformation and harvest of biological assets for sale or for conversion into agricultural produce or into additional biological assets. Examples of agricultural activity Agricultural. activity covers a diver: as the following: AF ON P ‘se range of activities such Raising livestock Annual or perennial cro ual c pping Cultivating orchards ati Floriculture et ae Aquaculture, including fish farming 364Biological transformation Biological transformation comprises the processes of growth, degeneration, production and procreation that cause qualitative or quantitative changes in a biological asset. 1. Asset changes through: a. Growth — an increase in quantity or improvement in quality of an animal or plant. « b. Degeneration — a decrease in quantity or deterioration in quality of an animal or plant. c. Procreation — creation of additional living animal or plant. 2. Production of agricultural produce such as latex, tea leaf, wool and milk. . Recognition An entity shall recognize a biological asset or agricultural produce when: a. The entity controls the asset as a result of past event. b. It is probable that future economic benefits associated with the asset will flow to the entity. ' © The fair value or cost of the asset can be measured reliably. In agricultural activity, control may be evidenced by, for example, legal ownership of cattle and the branding or otherwise marking of the cattle on acquisition or birth. Measurement A biological asset shall be measured on ‘initial recognition and at the end of each veporting period at fair value less cost of 'sposal, Y less cultural Produce harvested shall be measured at fair value ‘ke ‘ost of disposal at the point of harvest. fair Titural Produce growing on bearer plant is measured at 'ue less cost of disposal. - 365Gain and loss i isi: initi ition of a biological Again or loss arising on initial recognu Bical assy at init value less cost of disposal and any subsequent changer t fair value less cost of disposal shall be incl uded in profit ee loss. a A loss may arise on initial recognition of a biological asset becaus cost of disposal is deducted in determining fair value legs Cost, of disposal of a biological asset. A gain may arise on initial recognition of a biological asset, for example, when a calf is born. A gain or loss may arise on initial recognition of agricultural produce as a ‘result of harvesting which shall also be, included in profit or loss. An entity shall disclose the aggregate gain or loss arising on the initial recognition of biological asset and agricultural produce and from the change in fair value less cost of disposal of biological asset. Agricultural land Agricultural land is not deemed a biological asset. PAS 16 on property, plant and equipment and PAS 40 on investment prperty apply equally to agricultural land for purposes of measurement. Biological assets attached to land Biological asset may be physically attached to land, for example, trees in a plantation forest. There may be no separate market for biological asset that is attached to the land but an active market may exist for the combined assets, for the biological asset and land a5 4 package. * An entity may use information regarding the combined asse* to determine the fair value of the biological asset. For example, the fair value of the land may be deducted fro the fair value of the combined assets to arrive at the f* value of the trees in the plantation forest. 366‘Fair value of biological asset Fair value is defined as the price that would be received to sell n asset in an orderly transaction between market participants at the measurement date, There is a rebuttable presumption that fair value can be measured reliably for a biological asset, However, this presumption can be rebutted only on initial recognition for a biological asset for which market determined prices are not available or are clearly unreliable, Insuch a case, the biological asset shall be measured at cost less accumulated depreciation and any accumulated impairment. However, once the fair value of such a biological asset becomes clearly measurable, the entity shall measure the biological asset at fair value less cost of disposal. Fair value of agricultural produce In all cases, an entity shall measure agricultural produce at the point of harvest at fair value less cost of disposal. The fair value of agricultural produce at the point of harvest can always be measured reliably. The fair value measurement of agricultural produce stops at the point of harvest. After that date, the agricultural produce shall be accounted for as inventory and measured at the lower of cost and net realizable value after harvest. The fair value less cost of disposal at the point of harvest is the deemed cost of inventory. The harvested product is recorded as inventory and recognized as gain from agricultural Produce, Agricultural produce growing on bearer plants The agricultural produce growing on bearer plants remains within the scope of IAS 41. Tn other words, agricultural produce growing on bearer plant '8 classified ag biological asset. The agricultural produce as it grows is measured at the end of each xeporting period prior to harvest at fair value less 0st of disposal. id 367Bearer plants The IASB decided that bearer plants should be accounteq for in the same way as property, plant and equipment because the operation of bearer plants is similar to that of manufacturing. A bearer plant is a living plant that: a. Is used in the production or supply of agricultural produce. ; b. Is expected to bear produce for more than one period. c. Has a remote likelihood of being sold as agricultural produce, except for incidental scrap sales. In other words, a bearer plant is a living plant used solely to grow agricultural produce over the productive life, usually several periods. At the end of productive life, the bearer plant is usually scrapped A bearer plant that no longer bears produce is commonly cut down and sold as scrap at the end of the productive life. The incidental scrap sales would not prevent the plant from being a bearer plant. Examples of bearer plants a. Trees that produce fruits are bearer plants while the fruits growing on the trees are agricultural produce until harvested. In an oil palm plantation, a coconut tree is the bearer plant and the fruit is the agricultural produce. When immature, the coconut fruit can be harvested for drinking, known as "buko" juice in the vernacular. When mature, the coconut fruit can be processed to produce oil, charcoal from the hard shell and copra from the dried coconut flesh. 5 b. Ina vineyard, the grape vines are the bearer plants and the grapes are the agricultural produce. 368Not considered bearer plants Trees grown to be harvested and sold as log or lumber are * not bearer plants. b, Annual crops which do not bear produce for more than " one period and are held solely to be harvested as agricultural produce such as corn and rice are not bearer plants. Plant with dual use A plant with dual use is reported as biological asset and not as bearer plant. Aplant may have a dual use, namely: a. The plant is cultivated for bearing agricultural produce b. The plant itself is being sold either as a living plant or an agricultural produce. For example, rubber trees may be cultivated to grow rubber milk as agricultural produce and at the same time, may be sold’as living plant or cut down at the end of the productive life to be sold as lumber or wood. In this case, the rubber trees are recognized as biological asset because of the dual use. However, the rubber trees are recognized as bearer plants when simply cut down-and sold for scrap upon maturity. Judgment required Determining whether-a plant is a bearer plant is critical as 1t drives the subsequent measurement of the plant. Judgment is required in determining if the definition of 4 aan Plant is met especially in deciding whether the sales the plant itself are incidental scrap sales’ 869Measurement — immature bearer plants ants are similar to an item of Property li Immature bean being constructed before the intende, d plant and equipmen' use. The IASB decided that bearer plants before maturity are measured at accumulated cost in the same manner ag self-constructed item of property, plant and equipment, ‘Accumulation of cost ceases when the bearer plants are in the location and condition necessary for the intended use, meaning, the bearer plants already reach maturity. Accumulating cost of an immature bearer plant is a new concept. Entities should be able to track and capture costs incurred for bearer plants during the prematurity stage. Measurement — mature bearer plants There is no specific guidance when a bearer plant reaches maturity. For example, a grape vine may take many years to produce the right quantity and quality of fruit for a good wine. Judgment is required and entities need an-accounting policy to determine when bearer plants reach maturity. Mature bearer plants are measured using either the ee model or revaluation model. pneecetry ‘ing amount of bearer plants is depreciated 0” e ystematic basis over the productive useful life. The useful life of b i rind agricultural oaneat’t Plants is the number of years be uce, 370ee Bearer animals earer animals, like bearer plants, may be held solely for the produce that they bear. The IASB explicitly decided that bearer animals shall continue to be accounted for as biological assets. The reason is that the measurement as property, plant and equipment would become more complex if applied to bearer animals. Animal-related recreational] activities Managing recreational activities, for example, game parks and z00s, is not agricultural activity. The reason is that there is no management of the transformation of the biological asset but simply control of the number of animals. The natural breeding that takes place is not a managed activity and is incidental only to the main activity of providing a recreational facility. Accordingly, animals related to recreational activities shall be accounted for in accordance with PAS 16, Property, plant and equipment. P 371Illustration At the beginning of current year, an entity purchased 100 cow, which are 3 years old for P15,000 each for the purpose of producing milk for the local community. On July 1, the cows gave birth to 20 calves. The active market provided the following fair value less cost of disposal of the biological assets: Newborn calf on July 1 4,000 Newborn calf on December 31 5,000 1/2 year old calf on December 31 7,000 3 years old cow on December 31 18,000 4 years old cow on December 31 24,000 Journal entries 1. To record acquisition of 100 cows at P15,000 each or a total of P1,500,000. Biological assets 1,500,000 Cash 1,500,000 2. To record the birth of 20 calves with a fair value of P4,000° each or a total of P80,000. Biological assets 80,000 Gain from biological asset 80,000 3. To record the change in fair value of the cows and calves on December 31: Biological assets ‘960,000 Gain from biological asset 960,000 Cows which are now 4yearsold (100 xP 24,000) _ 2,400,000 Calves which are now 1/2 year old( 20 xP 7,000) __ 140.000 Total fair value~ December 31 2,540,000 Carrying amount of biological assets (1,500,000+80,000) _1,580.000 Change in fair value 960.008Financial statement presentation Inthe year-end statement of financial position, the biological assets shall be presented as a separate line item at the fair yalue of P2,540,000 and classified as noncurrent asset. ‘The income statement for the current year would show gain from change in fair value of P1,040,000, the sum of P80,000 on July 1 and P960,000 on December 31. Price change and physical change Separating the change in fair value between the portion attributable to price change and the portion attributable to physical change is encouraged but not required by the Standard. The change in fair value of P1,040,000 can be separated into price change and physical change. Fair value of 3 years old cow on December 31 18,000 Acquisition cost of 3 years old cow 15,000 Price change 3,000 Fair value of 4 years old cow on December 31 24,000 ~ Fair value of 3 years old cow December 31 18,000 Physical change 6,000 Fair value of newborn calf on December 31 5,000 Fair value of newborn calf on July 1 4,000 Price change 1,000 Fair value of 1/2 year old calf on December 31 7,000 Fair value of newborn calf on December 31 _5,000 Physical change , —2,000 3734 years old cows i 3,000) Price change (100 x 3, Physical change (100 x 6,000) 1/2 year old calves Price change (20 x 1,000) Physical change (20 x 2,000) Physical change at birth (20x 4,000) Total change in fair value Summary Price change: 4 years old cows 300,000 1/2 year old calves 20,000 Physical change: 4 years old cows 600,000 1/2 year old calves 40,000 At birth 80,000 Total change in fair value ~ 374 300,000 600,000 20,000 40,000 80,009 1,040,000 320,000 1,040,000Another illustration An entity produced milk for sale to local and national ice cream producers. The entity began operations at the beginning of current year by purchasing 500 milk cows for 8,000,000. The entity had the following information available at year-end relating to the cows: Carrying amount of milking cows, January 1 8,000,000 Increase in fair value due to growth and price change 900,000 Decrease in fair value due to harvest 200,000 Milk harvested during the year but not sold 400,000 Journal entries 1. To record the acquisition of milking cows: Biological asset 8,000,000 Cash 8,000,000 2. To record the net gain from the change in fair value of biological asset: Biological asset 700,000 Gain from biological asset Increase in fair value due to growth and price change Decrease in fair value due to harvest Net gain — biological asset . 3. Torecord the gain from change in fair value of agricultural produce: Milk inventory 400,000 Gain from agricultural produce 400,000 375QUESTIONS 1. Define biological asset, agricultural produce and harvest, 2. Define an agricultural activity. 3. Explain biological transformation. 4.Explain the recognition of biological asset ang agricultural produce. o . Explain the measurement of biological asset. 6. Explain the measurement of agricultural produce as it grows and once harvested. 7. Define bearer plant. 8. Explain the treatment of bearer plants. 9. Explain the treatment of bearer animals. 10. Explain the treatment of animal-related recreational activities. 5 7 376PROBLEMS Problem 13-1 Multiple choice (PAS 41) 1, p 2 Biological assets a. Are found only in Biotech entities, b. Are living animals or living plants and must be disclosed as a separate line item in the statement of financial position. c. Must be measured at cost. d. Do not generally have future economic benefit. . It is the.management by an entity of the biological transformation and harvest of biological asset for sale or for conversion into agricultural produce or into additional biological asset. a. Agricultural activity b. Biological activity c. Economic activity d. Development activity . Biological transformation results from asset changes through all of the following, except a. Growth b. Degeneration c. Procreation d. Production of agricultural produce |. Agricultural activity results in which of the following type of asset? a. Biological asset b. Agricultural produce c. Biological asset and agricultural produce d. Neither biological asset nor agricultural produce . Agricultural activity includes all of the following, except a. Raising livestock . Perennial cropping & Aquaculture : d. Ocean fishing 377@ 10. . Which statement is true about biological assets? a. Biological assets are measured at fair value less cost o¢ disposal. . f b. When fair value cannot be determined reliably, th, biological asset shall be measured at cost legs accumulated depreciation and impairment. _ c. There is a rebuttable presumption that the fair value of biological asset can be measured reliably. d. All of these statements are true about biological assets, _ . Agricultural produce is a. The harvested product from biological asset. b. Measured at the time of harvest at the cost of production, c. Measured at each reporting period at fair value less cost of disposal. d. All of the choicés are correct regarding agricultural produce. Agricultural produce as it grows on bearer plant is measured at the end of each reporting period prior harvest at a. Fair value b. Fair value less cost of disposal c. Fair value plus cost of disposal : d. Fair value less cost of disposal at the point of harvest . Agricultural produce harvested from bearer plant is measured at a. Fair value b. Fair value less cost of disposal at the point of harvest c. Cost of production less cost of disposal d. Fair value plus cost of disposal at the point of harvest The harvested agricultural produce is a. Accounted for as inventory al’ b. Initially recognized at fair value less cost of disp at the point of harvest. c. Recorded as gain from change in fair valu agricultural produce. : al d. All of these are correct about harvested agricultu™ produce. e of 378problem 13-2 Multiple choice (IFRS) 1, Generally speaking, biological assets rélating to agricultural * getivity shall be measured using a. Historical cost % b. Historical cost less depreciation less impairment c. A fair value approach d. Net realizable value 2, Which of the following is unlikely to be used in fair value measurement of biological asset? a. Quoted market price b. The most recent market transaction price c. The present value of the expected net cash flows d. External independent valuation 3. Which of the following criteria must not be satisfied before a biological asset can be recognized? a. The entity controls the asset as a result of past event. b. It is probable that future economic benefits relating to the asset will flow to the entity. c. An active market for the asset exists. d. The fair value can be measured reliably. > An entity had a plantation forest that is likely to be harvested and sold in 30 years. The income shall be accounted for in which of the following? a. No income shall be reported annually until first harvest. b. Income shall be measured annually and reported using a fair value approach. ¢. The eventual sale proceeds shall be estimated and recognized over the 30-year period. d. The plantation forest shall be measured every 5 years. 5. Where the fair value of the biological asset cannot be determined reliably, the assét shall be measured at “a. Cost b. Cost less accumulated depreciation ¢. Cost less accumulated depreciation and impairment loss d. Net realizable value 379he initial recgonition from a change . ing tl 6. Again or loss arising on t shall be included in in the fair value biological asse' a. Profit or loss for the period. } b. Other comprehensive income. c. A separate revaluation reserve. d. An appropriation reserve. 7. Where there is a long aging or maturation process after harvest, the accounting shall be dealt with by a. PAS 41, Agriculture b. PAS 2, Inventories . c. PAS 16, Property, plant and equipment d. PAS 40, Investment property 8. When agricultural produce is harvested, the harvest shall be accounted for as inventory at a. The fair value less cost of disposal at point of harvest b. The historical cost c. The historical cost less accumulated impairment loss . d. Fair value 9. Which statement is true regarding agricultural produce? a. Inall cases, an entity shall measure agricultural produce at fair value less cost of disposal at the point of harvest. b. The prevailing view is that the fair value of agricultural produce at the point of harvest can always be measured reliably. c. The fair value measurement of agricultural produce a stops at the time of harvest. ~ . All of these statements i 7 are t: din agricultural produce. rae ecole 10. Land that is related to agricultural activity is measured a. At fair value. b. In accordance with P, - eee or PAS 40, Investment Property. 7 At the Waue in combination with the biological asset- value separate from the biological asset. 380 AS 16, Property, Plant andProblem 13-3 Multiple choice (IFRS) 1. A bearer plant is a living plant that a. Is used in the production or supply of agricultural ' produce. b. Is used to bear produce for more than one period. c. Has a remote likelihood of being sold as agicultural produce, except for incidental scrap sales. d. Must possess all of these characteristics, 2. All of the following can be considered bearer plant, except . Coconut tree Grape vine Rubber tree |. Tree in a forest plantation to be harvested and sold as Jog or lumber ae op 38. According to IASB, bearer plants are accounted for as a. Biological assets with disclosure b. Biological assets without disclosure ¢. Property, plant and equipment d. Noncurrent investment 4. According to IASB, bearer animals are accounted for as Biological assets Propety, plant and equipment Investment property | Agricultural produce ae op 5. Animals related to recreational activities are classified as 8. Biological asset erty, plant and equipment ©. Investment property . 4. Intangible asset _ 881)Problem 13-4 Multiple choice (IFRS) 1. All would be classified as biological asset, except Dairy cattle Chicken Egg Tree Boop 2. Which would be classified as agricultural produce? Lumber Yarn Butter . Apple peop 3. All are classified as agricultural produce, except a. Sugar b. Wool” c. Felled tree d. Milk 4. Which would be classified as a product after harvest? a. Cotton b. Harvested cane c. Banana d. Cheese 5. All would be classified as product after harvest, except a. Carpet b. Logs c. Sausage d. Carcass 382problem 13-5 (IAA) Legend Dairy produced milk for local ice cream producers. The entity began operations at the beginning of current year by purchasing milking cows for P2,000,000. ‘The entity provided the following information at year-end relating to the milking cows: Carrying amount — beginning 2,000,000 Change in fair value due to growth and price change 400,000 Decrease in fair value due to harvest 50,000 Newborn calf at year-end at fair value 200,000, Milk harvested during the year but not yet sold 250,000 1 What amount of gain on biological asset should be reported in the current year? 400,000 350,000 ' 800,000 . 550,000 peop 2. What amount of gain on agricultural produce should be reported in the current year? 250,000 200,000 600,000 |. 650,000 ° pe TP What is the carrying amount of the biological asset at year-end? a. 2,000,000 b. 2,400,000 ©. 2,550,000 d. 2,800,000 4 Prepare journal entries for current. year. 383Problem 13-6 (IFRS) At the beginning of the current year, Honey Com, purchased 10 2-year old animals for P10,000 each. Pany One animal aged 2.5 years was purchased on duly 1 for P 10,800, and one animal was born on July 1. No animals were sold or disposed of during the year, Fair value less cost of disposal per unit 2-year old animal on January 1 10,000 2.5 — year old animal on July 1 10,800 New born animal on July 1 7,000 2- year old animal on December 31 10,500 2.5 — year old animal on December 31 11,100 Newborn animal on December 31 3 7,200 year old animal on December 31 12,000 0.5 — year old animal on December 31 8,000 Le What amount should be reported as fair value of the biological assets on December 31? a. 140,000 b.. 132,000 c. 144,000 d. 136,000 What amount of gain from biological assets should be recognized in the current year? a. 22,200 b. 29,200 ce. 30,000 d. 33,200 What amount should be recognized as gain from biological assets attributable to price change? a. 29,200 b. 22,200 c. 23,700 d. 5,500, Prepare journal entries for current year. 384problem 13-7 (IFRS) Joan Company provided the following data: Value of biological pond at acquisiton cost on December 31, 202: Sep? 6,000,000 Fair valuation surplus on initial recognition at fair ‘value on December 31, 2023 + + 500,000 Increase in fair value on December 31, 2024 due to growth and price fluctuation 900,000 Decrease due to harvest in 2024 100,000 1, What is the carrying amount of the biological asset on December 381, 2024? a. 7,400,000 b. 7,300,000 c. 7,500,000 d. 6,500,000 + . What amount of net gain from change in fair value of biological asset should be reported in the 2024 income statement? : we a. 1,400,000 b. 1,300,000 ec. 900,000 d. 800,000 Problem 13-8 (IFRS) Salve Company is engaged in 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 of disposal attributable to price change 400,000 Gain arising from change in fair value less cost of disposal 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? ‘ 2 8. -6,950,000 6,000,000 8,000,000 7,150,000 BesProblem 13-9 (IAA) Africa Company purchased 2,000 llamas at the beginning of current year, These lamas will be sheared semiannually an, d their wool sold to specialty clothing manufacturers, The lamas were purchased for 5,000,000. During the current year, the change in fair value due to growth and price change is P350,000, the wool harvested but not yet sold is valued at net realizable value of P100,000 ang the decrease in fair value due to harvest is P50,000. What is the carrying amount of the biological asset at year-end? a. 5,300,000 b. 5,400,000 c. 5,400,000, d. 5,100,000 Problem 13-10 (IFRS) Columbia Company is a producer of coffee. On December 31, 2023, the entity harvested coffee beans with fair value less cost of disposal of P3,500,000 at the point of harvest. Because of long aging and maturation process after harvest, the harvested coffee beans were still on hand on December 31, 2024. On such date, the fair value less cost of disposal is P3,900,000 and the net realizable value is P3,200,000. ‘ What amount should be reported as coffee beans inventory on December 31, 2024? 3,000,000 3,500,000 3,200,000 3,900,000 perp 386problem:13-11 (IAA) At the beginning of the current year, . Divine Compan purchased a vineyard costing P6,000,000. It was determined that the grape vines can produce fruit for a period of 8 years, During the year, the entity harvested grapes with a fair value less cost of disposal of P2,000,000. By the end of the year, the grapes were sold for P3,500,000. The entity incurred operating expenses of P500,000. What amount should be reported as pretax net income? a. 1,250,000 b. 2,750,000 ce. 2,250,000 d. 3,000,000 Problem 13-12 (IFRS) Dairy Company provided the following information for the current year: 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 tained earnings — beginning 800,000 Fair value of milk produced 600,000 Gain from change in fair value 50,000 nventories used 140,000 Staff costs 120,000 Depreciation expense 15,000 ther operating expenses 190,000 Income tax expense 55,000 What amount should be reported as net income for the current year? 650,000 600,000 130,000 t 185,000 ae op 387Problem 13-13 (AA) MOY ak anie has different _kin f farm animals a, Farmland Company ‘ont year. During, the current. year, the be age tions ‘occurred related to ale i ton January 1! Oe Hore year old 1009 10 Dairy cattle (3 years ot ¢ 20009 2b cae nee 3 years oll 500,000 2,100,009 Purchases on June 30: aa 4 Dairy cattle { 1 year old } 150,000 6 Carabaos 6 months old 100,000 250,000 Fair value less cost of disposal on December 31: 15 He 1 year old 1,200,000 10 Daz py cattle 2 years old 520,000 8 Carabaos 2.5 years old 250,000 20 Hogs 3 years old 550,000 4 Dairy cattle (1 “year old 170,000 6 Carabaos 6 months old ) 110,000 2,800,000 Fair value less cost of disposal on December 31: 15 Horses 2 years old 1,350,000 10 Dairy cattle (3 years old 580,000 8 Carabaos 3.5 years old 290,000 20 Hogs 4 years old 600,000 4 Dairy cattle (1.5 years old 200,000 6 Carabaos 1 “year old 140,000 3,160,000 be reported as gain from change in le to price change? 1. What amount should fair value attributabl a. 810,000 b. 450,000 ¢, 360,000 d. 0 2. What amount sho ull fair value attribute e i a. 810,000 b. 450,000 ¢. 360,000 d. 700,000 orted as gain from change i? © physical change? 388problem 13-14 (IFRS) Forester Company provided the follow con and Siem ing assets in a forest, plantat ion be 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 Plant with dual use 1,400,000 1. What total amount should be reported as biological assets? a. 7,800,000 b. 7,200,000 c. 8,400,000 d. 9,200,000 2. What total amount should be included in property, plant and equipment? 4,600,000 8,400,000 1,800;000 4,200,000 Boop 389