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 IAS +1 as a living animals or plant which is the subject of the agricultural activity para 9 Whereas agricultural produce is defined as the harvested product of the caterpeine's dangical assets {para 5) APU Level 2 Asia Pacific eventy of Technology Altin ADOPT REQUIRED: Discus on the principles of IAS 41 car with regards to the criteria of recognition and initial measurement of biological assets and agriculture produce (1 mark) (b) Karia Lid is a public limited company and would like advice in relation to the following transactions. Karia Ltd operates a defined benefit scheme for its sployees. At June 2020, the net pension liability recognised in the statement of financial positie was 520 million excluding an unrecognised actuarial gain of 10 million which are wishes to spread over the remaining working lives of the employees. The scheme was sed 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 he apply by Katia Lud. Appropriate examples and quotes from the trant standards expected to support your arguments (Total: 25 marks) QUESTION COVID-19 has caused many businesses to face significant financial difficulties to this may result in concerns surrounding financial reporting by such entities. There is expectatice from investors and other stakeholders that entities to provide clear disclosures about the impact of COVID-19 on the businesses the risks and uncertainties faced that effects als and financial position Information must be reliable and all material financial normat elevant to the financial position or performance of the company should be appropriately disclosed REQUIRED: Discuss the potential implicatives of COVID-19 pandemic that may impact on capitalization of borrowing costs, classification on financials, business combinations and in well as restructuring plan of the group which should be considered me in the financial statements for the year ended 31 December 2020 (Total: 25 marks) 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 IAS +1 as a living animals or plant which is the subject of the agricultural activity para 9 Whereas agricultural produce is defined as the harvested product of the caterpeine's dangical assets {para 5) APU Level 2 Asia Pacific eventy of Technology Altin ADOPT REQUIRED: Discus on the principles of IAS 41 car with regards to the criteria of recognition and initial measurement of biological assets and agriculture produce (1 mark) (b) Karia Lid is a public limited company and would like advice in relation to the following transactions. Karia Ltd operates a defined benefit scheme for its sployees. At June 2020, the net pension liability recognised in the statement of financial positie was 520 million excluding an unrecognised actuarial gain of 10 million which are wishes to spread over the remaining working lives of the employees. The scheme was sed 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 he apply by Katia Lud. Appropriate examples and quotes from the trant standards expected to support your arguments (Total: 25 marks) QUESTION COVID-19 has caused many businesses to face significant financial difficulties to this may result in concerns surrounding financial reporting by such entities. There is expectatice from investors and other stakeholders that entities to provide clear disclosures about the impact of COVID-19 on the businesses the risks and uncertainties faced that effects als and financial position Information must be reliable and all material financial normat elevant to the financial position or performance of the company should be appropriately disclosed REQUIRED: Discuss the potential implicatives of COVID-19 pandemic that may impact on capitalization of borrowing costs, classification on financials, business combinations and in well as restructuring plan of the group which should be considered me in the financial statements for the year ended 31 December 2020 (Total: 25 marks)
