que 1 – Comment on the following statement:
‘AASB 141 Agriculture applies to all biological assets.’
References to specific paragraphs in AASB 141 Agriculture are required in your answer.
que 2 – Green Farm Ltd owns and operates a large almond grove where the trees were valued at $2.5 million being the fair value less costs to sell on 30 June 2016. During the year ended 30 June 2017, the following information is available:
The almond grove produced almonds with an estimated fair value less costs to sell of $300 000.
The cost of knocking the almonds, grading them and packaging them was $70 000.
The almonds were sold for a total of $260 000 cash.
On 30 June 2017, the trees were valued at $2 550 000 being the fair value less costs to sell.
a) Prepare the journal entries to record the following transactions according to AASB 141 Agriculture:
i) harvesting of almonds
ii) sales of almonds
iii) changes in the fair value of the almond trees between 30 June 2016 and 2017
b) Determine the total profit that Green Farm Ltd made from the almond grove in the year ended 30 June 2017.