What is covered under IAS 41?
What is covered under IAS 41?
This standard provides the guidelines, to deal with the accounting treatment of biological assets and agricultural produce at the time of harvest, related to the agricultural activity along with related disclosure requirements in the financial statements of the entity.
How are unconditional government grants received in respect of biological assets measured and recognized?
Unconditional grants related to biological assets measured at fair value less costs to sell are recognised as income when the grant becomes receivable. Conditional grants are recognised as income only when the conditions attaching to the grant are met.
When must an entity which has received a conditional government grant for agricultural produce recognize the grant as income?
35If a government grant related to a biological asset measured at its fair value less costs to sell is conditional, including when a government grant requires an entity not to engage in specified agricultural activity, an entity shall recognise the government grant in profit or loss when, and only when, the conditions …
How do you determine the fair value of a biological asset?
A reliable basis for determining the fair value of biological assets and agricultural produce is their price in an active market. If an entity can sell its produce in several different active markets, it should use the price existing in the market where the produce is expected to be sold.
Which of the following is not dealt with PAS 41?
IAS 41, Agriculture applies to biotic assets. Biological assets means plants and animals. This standard deals with biological, or organic assets, cultivation at the point of culling and grants given by any authority or government. It does not apply to the process after harvesting, or for intangible assets.
What is service concession?
A service concession arrangement is an arrangement whereby a government or other public sector body contracts with a private operator to develop, operate and maintain an infrastructure asset such as a road, bridge, tunnel, airport, energy distribution network, prison or hospital.
What are biological assets as per ind as 41?
Accounting and fair valuation under Ind AS Indian Accounting Standards 41 – Agriculture (Ind AS 41) has introduced the concept of biological assets where a biological asset is defined to be a living animal or plant, and includes produce growing on bearer plants.
What is bearer plant as per ind as 41?
A bearer plant is a living plant that (defined under IND AS 16): – is used in the production or supply of agricultural produce; – is expected to bear produce for more than one period; and – has a remote likelihood of being sold. that produce the tea leaves.
Which of the following is accounted under PAS 41 agriculture?
PAS 41 applies to the following when they are relate to agricultural activity: Biological assets, except bearer plants. Agricultural produce at the point of harvest; and. Unconditional government grants related to biological asset measured at its fair value less costs to sell.
Which of the following is not dealt with by IAS 41 biological assets?
What is a government concession?
A concession or concession agreement is a grant of rights, land or property by a government, local authority, corporation, individual or other legal entity. Under a management contract the operator will collect the revenue only on behalf of the government and will in turn be paid an agreed fee.
Is concession agreement an asset?
These are assets used to provide public services in a service concession arrangement that is provided by the operator. It could also be provided by the grantor as an existing asset of the grantor or an upgrade to an existing asset.
What is IAS 41 and what does it apply to?
IAS 41 applies to biological assets, agricultural activity and government grants related to biological assets measured at fair value less costs to sell. Agricultural activity (and its examples: raising livestock, cropping, cultivating orchards and plantations, etc.), Agricultural produce (harvested product of entity’s biological assets), etc.
What is the IASB IFRS overview?
This ‘IFRS overview’ provides a summary of the recognition and measurement requirements of International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board (IASB) up to October 2018. The information in this guide is arranged in six sections: Accounting principles;
What are the IAS 41 requirements for agriagricultural products?
Agricultural produce harvested from an entity’s biological assets shall be measured at its fair value less costs to sell at the point of harvest. IAS 41 then deals with gains and losses, inability to measure fair value reliably, provides rules for government grants related to biological assets. IAS 41 requires number of disclosures.
What is financial risk management under IAS 41?
financial risk management strategies [IAS 41.49] reconciliation of changes in the carrying amount of biological assets, showing separately changes in value, purchases, sales, harvesting, business combinations, and foreign exchange differences* [IAS 41.50]
