Biological Asset

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Biological Asset by Mind Map: Biological Asset

1. Description

1.1. MFRS 141 Agriculture

1.2. Living animal/plant

1.2.1. Except: * Bearer Plants (BP) * Agriculture produce at point of harvest (AP) * Govt grants related to agricultural activity

1.3. Not apply to land/ITA

1.4. Palm fruits harvested from oil pals are agriculture produce

2. Key terms

2.1. Agricultural activity

2.1.1. B transformation& Harvest of BA for sale or conversion into AP/additional BA

2.1.2. Features

2.1.2.1. Capability to changes

2.1.2.1.1. animals/plant capable of B transformation

2.1.2.2. Management of change

2.1.2.2.1. management facilitates BT by enhancing, stabilizing, conditions necessary for the process to take places

2.1.2.3. measurement of change

2.1.2.3.1. Changes in qual/quantity by BT or harvest is measured

2.2. Biological Transformation

2.2.1. Processes

2.2.1.1. Growth

2.2.1.2. Degeneration

2.2.1.3. Production

2.2.1.4. Procreation tht causes changes in qual/quant in BA

2.3. Agriculture produce

2.3.1. Harvested produce of the entity's BA (Product of BA)

2.4. Harvest

2.4.1. Detachment of produce from BA

3. Recognition

3.1. COnditions

3.1.1. Entity controls of the asset as a result of past events

3.1.1.1. Legal ownership

3.1.1.2. Risk and rewards of ownership

3.1.1.3. eg: branding

3.1.2. probable future eco benefits

3.1.3. FV/cost measured reliably

3.2. Initial/subsequent

3.2.1. End of the year

3.2.2. FV (-) cost to sell

3.2.3. AP harvested from BA: FV (-) costs to sell at the point of harvest

3.2.4. Determine FV

3.2.4.1. Based on present location & condition

3.2.4.2. Produce based on sig. attributes; age

3.2.4.2.1. Corresponding to the market for basis pricing

3.2.4.3. Active market

3.2.4.3.1. recent market price

3.2.4.3.2. market prices for similar assets

3.2.4.3.3. sector benchmark

3.2.5. Journal Entries

3.2.5.1. Dr BA, CR. cash

3.2.5.2. DR BA, CR P&L

3.3. Disclosure

3.3.1. Aggregate gain/loss of current period of initial recognition of BA & AP

3.3.2. Description of each group of BA

3.3.3. Nature of activities

3.3.4. Non-financial measures

3.3.4.1. each BA at the end of the period

3.3.4.2. Output of AP during the period

3.3.5. methods & sig. assumptions used in determining FV of BA & AP at the point of harvest

3.3.6. FV (-) costs to sell of AP

3.3.7. The existence and CA of BA & the CA of Assets

3.3.8. Amount of commitments for the development or acquisition of BA

3.3.9. financial risk management strategies related to Agriculture activity

3.3.10. Reconciliation of changes in the CA of BA betw. beg and end of current period

3.4. FV cant measure

3.4.1. description of BA

3.4.2. Explanation of why FV cannot measured

3.4.3. the ranges estimates within which FV is highly likely to lie

3.4.4. Depreciation method

3.4.5. useful lives

3.4.6. Gross CA and the acc. dep. at the beg. and end of the period

4. Issues

4.1. IASB: FV is the best measurement because changes in BA have direct relationship to changes in expectations of future economic benefits.

4.2. bearer plants

4.2.1. MFRS141 or MFRS116