Agriculture RECOGNITION

1) The entity controls the asset as a result of past

1. BIOLOGICAL ASSET
events.
- Only those living animals and living plants Ex. Acquisition of bio assets
that are actually related to the agricultural
2) Probable that future economic benefits
activity of the company.
associated with the asset will flow to the entity.
2. AGRICULTURAL PRODUCE - merong inaasahang economic benefit

 Harvested product of an entity’s biological
asset. Products from the biological asset.
- Mango plantations; mango fruits are the
agricultural produce if nagkaroon na ng
harvest.
3. HARVEST
- detachment of the produce from the biological
asset/cessation of a biological asset’s processes.
- kapag nanganak yung kambing, baby animals
are agricultural produce.
------------------------------------------------------------------
APPLICABLE STANDARD:
a) PAS 41 – used at the point of harvest.
(Pagkapitas sa puno). FVCTS
3) The fair value or cost of the asset can be
measured reliably.
- It is probable and measured reliably.
MEASUREMENT
Initial & Subsequent:
- Fair Value less Cost to Sell (aka Disposal Costs)
*Cost to Sell – Incremental costs directly
attributable to the disposal of the asset (lahat ng
costs na naincur upon the disposal of the asset is
deducted from the FV
*Example: Commission of the Broker; Taxes
(import duties, transfer tax), etc.
*Excluded: Expensed outright (transport costs,
finance costs/interest costs, income tax)
REMEMBER:

b) PAS 2 – if the company is engaged in an It is possible to have changes in Fair Value which
agricultural activity and the produce will be for the will be treated as part of the Profit or Loss (Gain
purpose of sale. Ginagamit after at the point of or loss)
harvest lower of cost or NRV 1) FV > CA = Gain
2) FV < CA = Loss
------------------------------------------------------------------
------------------------------------------------------------------
EXAMPLE:
EXAMPLE: Land used in an agricultural activity is
Biological Asset (41) Sheep not a part of PAS 41 since this is not a bio asset.
However, if the land consists of trees used in
Agri Produce (41) Wool
agricultural activity, the trees are part of biological
Inventories (2) Yarn/Carpet asset.

+ Hence, paano sila paghihiwalayin?

Biological Asset Trees in Plantation Forest - If separate market exists for the trees and the
land, we will measure them using their separate
Agri Produce Felled Trees (kinuhang fair value and separate line item.
puno after putulin)
- If no separate market exists, the FV of trees
Inventories Lumber will be the residual amount (FV of combined
+ assets example trees + land – fair value of the
asset example, the land) to get the value of the
Biological Asset Dairy Cattle trees.
Agri Produce Milk ------------------------------------------------------------------
Inventories Milk/Cheese ANIMALS RELATED TO RECREATIONAL
ACTIVITIES
+ Biological Asset Pigs
- Animals in game parks and zoos.
Agri Produce Carcass
- not part of PAS 41, rather PAS 16.
Inventories Sausage/Ham
BEARER PLANTS
- plants used solely to grow produce over several
periods & at the end of their productive lives,
these are usually scrapped or sold.
- A living plant that:
a) used in the production or supply of agricultural
produce. Plants used to get agricultural produce
na nagiging inventories.
b) expected to bear produce for more than 1
period.
c) has a remote likelihood (less than 50% or
10%<) of being sold as agricultural produce,
except for incidental scrap sales.
- not classified as part of PAS 41, rather PAS 16.
They are equipment since they are used to
produce inventories.
- However, when this bearer plant only bear
produce for 1 period and less, it becomes a part
of the PAS 41.
- As part of PPE, it depreciates.
- They depreciate if they are matured. Because
PPEs start to depreciate once they are already
available for use.
- If immature pa yung puno, hindi pa siya
mamumunga then hindi pa siya madedepreciate.
------------------------------------------------------------------
PRESENTATION
1) Current
- If the produce growing in a plant that is yet to be
harvested and requires less than 12 months
from the reporting period, bago sila maging ready
for harvest, they are NCA.
- If the chickens are held for slaughtering
purposes.
2) Noncurrent
- If the produce growing in a plant that is yet to be
harvested and requires more than 12 months
from the reporting period, bago sila maging ready
for harvest, they are NCA.
- Ex: Yung mga bunga na nasa puno pa and
more than 12 months pa bago sila makuha
- If the chickens are held for breeding purposes
only.
------------------------------------------------------------------
------------------------------------------------------------------
CA, Beg. xx
FV, End. (xx)
Gain/Loss xx
*The result (Gain/Loss) will be mahahati into 2.
The Price Change (FV Gain due to Price Change:
change on the price of the Bio Asset) and the
Physical Change (change due to physical
appearance of the Bio asset: nanganak yung
alaga, namatay yung halaman, or namunga).
REMEMBER:
1) In CA, Beg., kung ano lang yung existing at the
beginning as well as the purchases during the
year are included.
- not included yung harvest.
2) In FV, End, includes lahat ng existing at the
end. Including purchases and harvests during the
year.
-Not included ang mga nadisposed and namatay
na.
------------------------------------------------------------------
COMPUTATION:
After we compute the Gain or Loss, paano ito
ihihiwalay sa price or physical change?
1) Lahat na lang ng existing ang icoconsider.
a) CA, Beginning of those existing alone. xx
b) FV of Bio Asset @ Beg. Age on
Remeasurement or Balance Sheet Date
xx
c) FV, End xx
*Price Change = a – b *Price Change + Physical Change = Total
*Physical Change = (b – c) + Initial Gain/Loss
Measurement of Agricultural Produce – Cost
of Disposed Biological Asset