Company S owns sheep and the end of its reporting period is 30 June. The sheep...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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.
Expert Answer:
Answer rating: 100% (QA)
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:
Students also viewed these accounting questions
-
Zeta Bio Tech Ltd (Zeta) is engaged in manufacturing of biotechnology products with the below non-current assets as at 30 November 2019: Cost/revalued amount Accumulated depreciation Carrying amount...
-
The following questions are adapted from a variety of sources including questions developed by the AICPA Board of Examiners and those used in the Kaplan CPA Review Course to study property, plant,...
-
Prestige Printing Ltd commenced business on 1 July 2015. On 5 July 2015, a printing machine was purchased for $35 000 plus GST, payable in two equal instalments due on 1 August and 1 October 2015....
-
Monroe Inc. is an all-equity firm with 500,000 shares outstanding. It has $2,000,000 of EBIT, and EBIT is expected to remain constant in the future. The company pays out all of its earnings, so...
-
The Stanton Supply Co. produces cleaning equipment for professional cleaners. At the start of the year, Stanton estimated variable overhead costs to be $13 per unit and total fixed overhead costs at...
-
Find the volume of the solid generated by revolving about the y-axis the region bounded by the line y = 4x and the parabola y = 4x2.
-
What are the ways that social media sites are affecting courtrooms?
-
Zeidman Security Services Co offers security services to business clients. The trial balance for Zeidman Security Services Co. has been prepared on the end-of-period spreadsheet (work sheet) for the...
-
Six months ago, you purchased a European call option for $2.5. The option is about to expire. It has an exercise price of $56 and a premium of $4. The underlying asset is selling for $54. a) How...
-
Government actions such as price floors and price ceilings can actually increase unemployment and reduce market efficiency. True or False
-
Grand Snacks makes candy bars for vending machines and sells them to vendors in cases of 30 bars. Although Grand Snacks makes a variety of candies, the cost differences are insignificant, and the...
-
How does a firm's external environment impact its strategic decision making process?
-
What are some best practices for writing clean and maintainable code? Provide examples of code snippets demonstrating these practices.
-
A certain light truck can go around a flat curve having a radius of 140 m with a maximum speed of 27.0 m/s. With what maximum speed can it go around a curve having a radius of 89.0 m?
-
How does the implementation of a centralized database system impact the efficiency and data accuracy in a large retail organization?
-
Write a project proposal on Predictive Policing Using Long Short Term Memory. The proposal must contain but not limted to; Abstract Introduction Project Problem Statement Objectives and Expectations...
-
A spark can travel through the air from one capacitor plate to another if the electric field is large enough - typically at 2.9310 6 N/C. This is called "breakdown" and the air essentially becomes a...
-
The liquidliquid extractor in Figure 8.1 operates at 100F and a nominal pressure of 15 psia. For the feed and solvent flows shown, determine the number of equilibrium stages to extract 99.5% of the...
-
Outline the accounting for brands under IAS 38, and discuss the difficulties for standard setters in allowing the recognition of all brands and formulas on the statement of financial position.
-
IAS 39 applies a 'rights and obligations approach' to the recognition of financial instruments. Discuss.
-
Discuss how the company should account for the cost of the customer list. If the cost is capitalized, discuss the determination of the useful life over which the asset is amortised.
-
An air-conditioning chiller unit weighing \(10 \mathrm{kN}\) is to be supported by four air springs (Fig. 2.50). Design the air springs such that the natural frequency of vibration of the unit lies...
-
The maximum velocity attained by the mass of a simple harmonic oscillator is \(10 \mathrm{~cm} / \mathrm{s}\), and the period of oscillation is \(2 \mathrm{~s}\). If the mass is released with an...
-
A helical spring, when fixed at one end and loaded at the other, requires a force of \(100 \mathrm{~N}\) to produce an elongation of \(10 \mathrm{~mm}\). The ends of the spring are now rigidly fixed,...
Study smarter with the SolutionInn App