The manager of Smithton Ltd does not believe that the companys immature crops belong in the calculation

Question:

The manager of Smithton Ltd does not believe that the company’s immature crops belong in the calculation of biological assets, as there is no active market for immature crops, and they are not yet at the point of harvest.

Required

Advise the manager whether this position meets the requirements of AASB 141/IAS 41.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial Reporting

ISBN: 9780730396413

4th Edition

Authors: Janice Loftus, Ken Leo, Sorin Daniliuc, Belinda Luke, Hong Nee Ang, Mike Bradbury, Dean Hanlon, Noel Boys, Karyn Byrnes

See More Books

Question Posted: Apr 16, 2024 01:01 AM

See More Questions

The management of Luis Inc., a small private company that uses the cost recovery impairment model, was discussing whether certain equipment should be written down as a charge to current operations...
The management of Luis Inc., a small private company that uses the cost recovery impairment model, was discussing whether certain equipment should be written down as a charge to current operations...
Viggy Ltd is a small business with August year end. During the interim board meeting directors announced that they want to diversify the company to ensure sustainability and growth and require...
On August 31, 2014, Nina Herrera borrowed $5,000 from Second State Bank. Herrera signed a note payable, promising to pay the bank principal plus interest on August 31, 2015. The interest rate on the...
Each individual in a sample of nursing home patients was cross-classified both with respect to cognitive state (normal or mild impairment, moderate impairment, severe impairment) and with respect to...
A 2500-lb automobile comes to a complete stop from 65 mph. If 60% of the braking capacity is provided by the front disk brake rotors, determine their temperature rise. Each of the two cast-iron...
Suppose the wealth that is to be received at a time $T$ in the future has the form where $a$ is a constant and $x$ is a random variable. The value of the variable $h$ can be selected by the...
The business problem facing the director of broadcasting operations for a television station was the issue of standby hours (i. e., hours in which unionized graphic artists at the station are paid...
A pool has three water faucet and one drain faucet. The first water faucet can fill up the pool in 3 hours, the second water faucet can fill up the pool in 4 hours, and the third water faucet can...
The accountant of Fingal Ltd has presented land and a pine tree plantation as a single asset on the basis that the two are interrelated, with one component being worth almost nothing without the...
The G. Wolfe Corporation is examining two capital-budgeting projects with 5- year lives. The first, project A, is a replacement project; the second, project B, is a project unrelated to current...
Corinne Dunbar, M.D., maintains the accounting records of Dunbar Clinic on a cash basis. During 2015, Dr. Dunbar collected 142,600 from her patients and paid 60,470 in expenses. At January 1, 2015,...
In the space provided for part b in the Student Work Area, calculate the burn rate for the years that there is a net decrease in cash flows. The burn rate is calculated by dividing the ending cash...
Why Learn about the key tasks and tools needed to complete period and year-end activities in quickbooks?
A negative amount of FDI means that the US was disinvesting - selling more of its foreign assets than buying them in 2018. If you're wondering why, take a look at the second publication. Part of the...
Jet Fuel Risk Management at Southwest Airlines: The Company also had fuel derivative contracts in place for its expected fuel consumption: 55 percent for 2009, 30 percent for 2010, 15 percent for...
What legislation requires public companies to establish and maintain internal controls to ensure accurate financial reporting and mitigate fraud risks?
A laser beam 1 mm wide is aimed at a detector 1 mm wide 100 m away on the roof of a building. How much of an angular diversion (in degrees) does the laser have to have before it misses the detector?
A. Select a recent issue (paper or online) of Report on Business Magazine, Canadian Business Magazine (online only), Bloomberg Businessweek, Fast Company, The Economist, or another business magazine....
The following statement refers to a source of short-term credit. Select the best term to complete the following sentence: When resources are used and the payment for those resources is delayed, the...
George Hines, the HIM director at Memorial Hospital has been asked to compose a record retention policy for the hospital. What should be his first consideration in determining how long paper and...
liabilities divided by assets amount saved each month divided by gross income liquid assets divided by current liabilities liquid assets divided by monthly expenses. How is the savings ratio...

The manager of Smithton Ltd does not believe that the companys immature crops belong in the calculation

Question:

Step by Step Answer:

Under AASB 141IAS 41 immature biological assets should be measured at fair v...View the full answer

Financial Reporting

Students also viewed these Business questions