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Question 2. In accordance with IAS 41 Agriculture, which of the following statements is correct? (A)...

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.

Solutions

Expert Solution

Question 2. In accordance with IAS 41 Agriculture, which of the following statements is correct?

Answer : (B) Dairy cattle are initially measured at fair value

and the all other statemetn are not correct

(A) A fruit tree is initially measured at cost

(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?

Answer : (A) The sale proceeds are recognised as a financial liability

and other are not true :

(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.

ekkarill92 answered 2 years ago
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