Company S owns sheep and the end of its reporting period is 30 June. The sheep...
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Company S owns sheep and the end of its reporting period is 30 June. The sheep are held to produce wool. At 1 July 2010 Company S had 1000 sheep and 200 lan:bs, with a feir value (less point-of-sale costs) of $200 per sheep and $50 per lamb. During the year ended 30 June 2011 the following occurred: 100 new sheep were purchased at $210 each 20 lambs matured into sheep 3 lambs died 15 lambs were born 100 sheep were sold for $240 each Salaries and other operating costs were $34,000 1. 2. 3. 4. 5. 6. Company S owns the farmland which was purchased for $1.5 million. The land is measured at fair value using the revaluation model under IAS 16. As at 30 June 2011 the fair value of the land was assessed at $5.6 million ($4.7 million as at 30 June 2010). Company S also has plant and equipment which was purchased for $1 million and is depreciated over its expected useful life of 10 years. As at 1 July 2010 the plant and equipment was 2 years old. As at 30 June 2011 the fair value (less point-of-sale costs) is determined as $250 per sheep and $55 per lamb. Company S has determined that these are the appropriate fair values to use for the purposes of transfers, births and deaths of lambs. The price change between a lamb and a sheep at the time of maturity during the year was estimated to be $195. During the year company S produced wool with a fair value less point-of-sale costs of $387 000. Required Preform the appropriate reconciliation and prepare the relevant extracts of statement of comprehensive income and statement of financial performance and the necessary disclosure notes for Company S in accordance with IAS 41 for the year ended 30 June 2011. Company S owns sheep and the end of its reporting period is 30 June. The sheep are held to produce wool. At 1 July 2010 Company S had 1000 sheep and 200 lan:bs, with a feir value (less point-of-sale costs) of $200 per sheep and $50 per lamb. During the year ended 30 June 2011 the following occurred: 100 new sheep were purchased at $210 each 20 lambs matured into sheep 3 lambs died 15 lambs were born 100 sheep were sold for $240 each Salaries and other operating costs were $34,000 1. 2. 3. 4. 5. 6. Company S owns the farmland which was purchased for $1.5 million. The land is measured at fair value using the revaluation model under IAS 16. As at 30 June 2011 the fair value of the land was assessed at $5.6 million ($4.7 million as at 30 June 2010). Company S also has plant and equipment which was purchased for $1 million and is depreciated over its expected useful life of 10 years. As at 1 July 2010 the plant and equipment was 2 years old. As at 30 June 2011 the fair value (less point-of-sale costs) is determined as $250 per sheep and $55 per lamb. Company S has determined that these are the appropriate fair values to use for the purposes of transfers, births and deaths of lambs. The price change between a lamb and a sheep at the time of maturity during the year was estimated to be $195. During the year company S produced wool with a fair value less point-of-sale costs of $387 000. Required Preform the appropriate reconciliation and prepare the relevant extracts of statement of comprehensive income and statement of financial performance and the necessary disclosure notes for Company S in accordance with IAS 41 for the year ended 30 June 2011.
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Statement of comprehensive income Revenue Wool sales 387000 Sheep sales 240000 Cost of goods sold Wo... View the full answer
Related Book For
Applying International Financial Reporting Standards
ISBN: 978-0730302124
3rd edition
Authors: Keith Alfredson, Ken Leo, Ruth Picker, Paul Pacter, Jennie Radford Victoria Wise
Posted Date:
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