BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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COCONUT TREE
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BEARER ANIMALS
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MILKING COWS
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AGRICULTURAL PRODUCE GROWING ON A BEARER PLANT
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Detailed explanation-1: -For example, livestock such as goats, cows, sheep, pigs, and fish are all considered biological assets. Biological assets also include crops grown by farmers – e.g., corn, tomatoes – as well as grapevines, cannabis, trees, and any produce coming from trees, such as apples.
Detailed explanation-2: -Living plants and animals is a biological asset.
Detailed explanation-3: -22 An entity does not include any cash flows for financing the assets, taxation, or re-establishing biological assets after harvest (for example, the cost of replanting trees in a plantation forest after harvest).
Detailed explanation-4: -IAS 41 applies to biological assets with the exception of bearer plants, agricultural produce at the point of harvest, and government grants related to these biological assets.