Radwa corporation purchased 100 cows for L.E 200,000 on 31 December 2020. Transportation cost was L.E 1,000. Radwa would have to incur the same transportation costs if it had sold its cow in the market. In addition. There would be 2% commission fees in the marketplace of the cow payable by the seller. Radwa also incurred L.E 500 on veterinary expenses.

On 30 June 2021, the fair value of the cows in the most relevant market increased to L.E 210,000. Radwa would have to incur L.E 1000 transportation costs if it had sold its cows in the market. In addition. There would be 2% commission fees in the marketplace of the cow payable by the seller.

On 15 December 2021. Forty-two cows were slaughtered on that day and the cost was L.E 4,200. The fair value of the carcasses on that day was L.E 48,300 and the estimated transportation cost to sell the carcasses is L.E 420. No other selling costs are expected.

What is the carrying amount of the Biological Asset under IAS 41 on 31 December 2020?

What would be the gain/loss in the income statement relating to agricultural activity On 30 June 2021?

What is the carrying amount of inventory(slaughtered cows) on 15 December 2021?

What is the carrying amount of Biological assets on 15 December 2021?

Answer rating: 100% (QA)

1 The carrying amount of the Biological Asset under IAS 41 on 31 December 2020 is 20000... View the full answer