Biological Assets Classification

This is a mind map that contains information about the biological asset classification.

Edited at 2020-10-12 03:12:38

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Biological Assets Classification

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Outline

Biological Assets Classification

Definition

MFRS 141 Agriculture applies to accountfor biological assets (except for bearerplants), agricultural produce at the point ofharvest and government grants that relatesto agricultural activity

A living animal or plant

Key Terms

Agricultural activity

Common Features

Capability to change

Management of change

Measurement of change

Biological transformation

Agriculture produce (MFRS 141)

Harvest

Bearer plants (MFRS 116)

The bearer plants would continue to bearthe produce until they are no longerproductive.

Finished Products (MFRS 102)

Disclosure

FV can be measured reliably

The aggregate gain or loss that arise

A description of each group of biologicalassets

The nature of activities

The methods and significant assumptionsused in determining the fair value

The fair value less costs to sell

A reconciliation of changes in the carryingamount of biological assets

FV cannot be measured reliably

A description of the biological assets

An explanation of why fair value cannot bemeasured reliably

The range of estimates within which fairvalue is highly likely to lie (if possible)

Recognition

The entity controls the assets as a result ofpast events.

It is probable that future economic benefit associated with the asset will flow to the entity.

The fair value or cost of the asset can be measured reliably.

Fair Value

Based on its present location and condition.

Active market exists

Market quoted price (most relevant)

No active market exists.

Most recent transaction price

Market price for similar assets

Sector benchmark

PV of expected net cash flows

FV cannot be measured reliably

Cost Acc,Dep, Acc. IL