QUESTION 2 (a) Agricultural activities are distinguished by the fact that management facilitates and manages biological transformation and is capable of measuring the change in the quality and quantity of biological assets. A biological asset is defined in IAS 41 as a living animals or plant which is the subject of agricultural activity (para 5). Whereas agricultural produce is defined as the harvested product of the enterprise s biological assets (para 5). REQUIRED Discuss on the principles of IAS 41 Agriculture with regards to the criteria of recognition and initial measurement of biological assets and agriculture produce. (13 marks) (6) Karia Ltd is a public limited company and would like advice in relation to the following transactions. Karia Ltd operates a defined benefit scheme for its employees. At June 2020, the net pension liability recognised in the statement of financial position was $20 million, excluding an unrecognised actuarial gain of $10 million which Karia Ltd wishes to spread over the remaining working lives of the employees. The scheme was revised on 1 June 2020. However, part of the scheme was to be closed, without any redundancy of employees Karia Ltd requires advice on how to account for the above scheme including the presentation and measurement of the pension expense REQUIRED Discuss on the above event and justify the appropriate accounting treatment that should be apply by Kana Ltd. Appropriate examples and quotes from the relevant standard is expected to support your arguments (12 marks)