BIOLOGICAL ASSETS (LIVING ANIMAL/PLANT)

Get Started. It's Free
or sign up with your email address
Rocket clouds
BIOLOGICAL ASSETS (LIVING ANIMAL/PLANT) by Mind Map: BIOLOGICAL ASSETS (LIVING ANIMAL/PLANT)

1. MFRS141

1.1. Account for all biological assets.

1.2. Except bearer plants, agricultural produce at the point of harvest and government grants that relates to agricultural activity

2. Agricultural activity

2.1. Biological transformation

2.2. Harvest of biological assets for sale

3. Biological transformation

3.1. Processes of growth, degeneration, production, and procreation

4. Agriculture produce

4.1. Harvested produce

5. Bearer plants

5.1. Will be harvested

5.2. Under MFRS116

6. Recognition MFRS141

6.1. The entity controls the assets as a result of past events

6.1.1. Legal ownership

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

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

7. Measurement MFRS141

7.1. Initial recognition

7.1.1. At the end of each reporting period

7.1.2. Fair value less cost to sell (can measure reliably)

7.1.2.1. Fair value

7.1.2.1.1. Amount for which the asset could be exchanged between knowledgeable, willing parties in an arm’s length transaction.

7.1.2.1.2. For biological asset has to be based on its present location and condition

8. Journal entry

8.1. To record acquisition of the biological asset

8.1.1. Dr. Biological asset

8.1.2. Cr. Cash

8.2. To recognize the biological asset at fair value

8.2.1. Dr. Biological asset

8.2.2. Cr. Profit or Loss

9. Disclosure

9.1. A description of each group of biological assets.

9.2. Aggregate gain or loss that arise during the current period

9.3. Nature of activities

9.4. Non-financial measures or estimates of the physical quantities

9.4.1. Each group biological assets at the end of the period

9.4.2. Output of agriculture produce during the period.

9.5. The methods and significant assumptions used in determining the fair value of each group of biological assets and agricultural produce at the point of harvest

9.6. The fair value less costs to sell of agricultural produce at the point of harvest

9.7. The amount of commitments for the development or acquisition of biological assets

9.8. Financial risk management strategies related to agricultural activity

9.9. FAIR VALUE CANNOT measure reliably

9.9.1. A description of the biological assets

9.9.2. An explanation of why fair value cannot be measured reliably

9.9.3. The range of estimates within which fair value is highly likely to lie