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Please answer both For entities that report using IFRS, what is an example of bearer plants? a) Broccoli plants that are grown and harvested for
Please answer both
For entities that report using IFRS, what is an example of bearer plants? a) Broccoli plants that are grown and harvested for six months. O b) Strawberry plants that are grown and harvested for three years. Grapes that have been harvested and will be sold to customers without processing. d) Flowers that will be cut to be sold to make bouquets. Laffy Farms Corp. (Laffy), a publicly accountable entity, is growing half an acre of cannabis in its east field. Laffy incurred costs of planting in May 2020, including seedlings and labour, of $28,000. At the time of planting, the cannabis seedlings had a fair value of $18,000. The cannabis are expected to be harvested and sell for $90,000 in August 2020 and Laffy expects to incur additional costs of $12,000 prior to harvest. There are no costs to sell. Assuming that cannabis seedlings are a biological asset, how should the seedlings be measured at initial recognition? a) Capitalized for $28,000. b) All costs related to the planting should be expensed. c) Capitalized for $50,000. d) Capitalized for $18,000Step by Step Solution
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