Biological Assets (MFRS 141)

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Biological Assets (MFRS 141) by Mind Map: Biological Assets (MFRS 141)

1. Definition

1.1. MFRS 141 Agriculture applies to account for biological assets (except for bearer plants), agricultural produce at the point of harvest and government grants that relates to agricultural activity

1.2. A living animal or plant.

2. Key Terms

2.1. Agricultural activity

2.1.1. Common Features Capability to change Management of change Measurement of change

2.2. Biological transformation

2.3. Agriculture produce (MFRS 141)

2.4. Harvest

2.5. Bearer plants (MFRS 116)

2.5.1. The bearer plants would continue to bear the produce until they are no longer productive.

2.6. Finished Products (MFRS 102)

3. Recognition

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

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

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

3.4. Control in the agricultural activity, may be evidenced by legal ownership of the assets as well as the exposure of risks and rewards of ownership of the assets.

4. Measurement

4.1. Measured on initial recognition and at the end of each reporting period at its fair value less cost to sell when the fair value can be measured reliably.

4.2. Agriculture produce harvested from an entity’s biological asset is measured at its fair value less costs to sell at the point of harvest .

5. Fair Value

5.1. Based on its present location and condition.

5.2. Active market exists

5.2.1. Market quoted price (most relevant)

5.3. No active market exists.

5.3.1. Most recent transaction price

5.3.2. Market price for similar assets

5.3.3. Sector benchmark

5.3.4. PV of expected net cash flows

5.4. FV cannot be measured reliably

5.4.1. Cost - Acc,Dep, - Acc. IL

6. Disclosure

6.1. FV can be measured reliably

6.1.1. The aggregate gain or loss that arise

6.1.2. A description of each group of biological assets

6.1.3. The nature of activities

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

6.1.5. The methods and significant assumptions used in determining the fair value

6.1.6. The fair value less costs to sell

6.1.7. The existence and carrying amount of biological assets whose title is restricted, and the carrying amount of biological assets pledged as security for liabilities

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

6.1.9. Financial risk management strategies

6.1.10. A reconciliation of changes in the carrying amount of biological assets

6.2. FV cannot be measured reliably

6.2.1. A description of the biological assets

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

6.2.3. The range of estimates within which fair value is highly likely to lie (if possible)

6.2.4. The depreciation method used

6.2.5. The useful lives or depreciation rates used

6.2.6. The gross carrying amount and the accumulated depreciation