2 GroWell Plantation Bhd (GPB) is a public limited company and has commenced business in Malaysia for more than 40 years. GPB currently owns and manages oil palm estates with a total plantation acreage of 9,000 acres in the state of Pahang, Malaysia. The harvesting process is continuously throughout the financial year to be used in the production of crude palm oil (CPO). GPB has two types of inventories, oil palm fruits and CPO. The financial statements of GPB arc prepared under the historical cost convention, except for investment in subsidiaries and biological assets (including agricultural produce) that are measured at revalued amounts of fair values at the end of each reporting period. For the biological assets, fair value is determined based on the present value of expected net cash flows from the assets, while the fait value of agricultural produce is generated from the quoted price from the active market. Below are the incomplete notes to the financial statements for biological assets for the year ended 31 December 2020, Notes to the financial statements: 10. BIOLOGICAL ASSETS At valuation 2020 2019 RM RM At 1 January * 1.054.212 Fair value rain loss) (377.256) At 31 December 676,956 The fair value and cost to sell of the biological assets for the yeat ended 2020 was RM850,000 and RM98,262, respectively REQUIRED: (a) Based on your understanding of the concept of the biological asset according to the MERS 141 Agriculture, provide an example of biological asset, agricultural produce and bearer plant in relation to GPB agricultural activities. Marks) (b) Agricultural produce is recognised and measured at the only point of harvest Should GPB Te-measure the amount of agricultural produce to record the value of inventory for oil palm fruits? Justify your answer (2 Marks) (c) Consider the below cases separately (1) Explain why GPBuses a discounted cash flow model to determine the fair value of biological assets Assume that GPB has entered into a contract with Fresh Farm Ehd to sell its agricultural produce at a future date. Explain whether GPB can use the contract price to determine the fair value of agricultural produce. Justify your answer. 3 Marks RKAR1003 FINANCIAL ACCOKINTING AND REPORTING U (i) Determine the value of x,y and z that are missing in the notes to the financial statements 45 Marks) Prepare the journal entries to record the fair value pain or loss of biological assets in 2019 and 2020 for GPB according to MFRS 141 Agriculture. (2 Marks) (iv)