Chapter 6- Agriculture And Inventories Flashcards Preview

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Flashcards in Chapter 6- Agriculture And Inventories Deck (8)
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1
Q

What is a biological asset?

A

A living plant or animal

2
Q

What is agriculture produce?

A

Produce harvested from a biological asset

3
Q

How should you recognise biological assets initially?

A

Recognise at fair value less costs to sell

4
Q

How to recognise biological assets at year end?

A

Revalue to fair value less costs to sell, recognise gain or loss in profit and loss

5
Q

How to recognise agricultural produce initially?

A

Recognise at fair value less costs to sell, and then immediately reclassify as inventories

6
Q

How to recognise agriculture grants?

A

Recognise in profit and loss when conditions met

7
Q

How do you measure inventories?

A

Lower of cost and net realisable value

8
Q

How is net realisable value calculated?

A

Expected selling price less expected costs to sell