Question
Question 2. In accordance with IAS 41 Agriculture, which of the following statements is correct? (A) A fruit tree is initially measured at cost (B)
Question 2. In accordance with IAS 41 Agriculture, which of the following statements is correct?
(A) A fruit tree is initially measured at cost
(B) Dairy cattle are initially measured at fair value
(C) Stores of harvested tea are within the scope of IAS 41
(D) A gain on remeasurement of sheep to fair value is reported in other comprehensive income
Question 3. In 20X5 Leasy Co sells and leases back a manufacturing asset by way of a lease. The transfer does not qualify as a sale in accordance with IFRS 15. The sale proceeds were in excess of fair value and exceeded carrying amount of the asset. Which of the following statements is true?
(A) The sale proceeds are recognised as a financial liability
(B) The excess of sale proceeds over fair value are recognised as a financial liability
(C) A right of use asset is recognised
(D) The asset is derecognised and a gain or loss on disposal arises.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started