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Agriculture & inventories - Coggle Diagram
Agriculture & inventories
Agriculture
Agriculture produce
INITIALLY: recognise at FV - cost to sell
Produce harvested from a biological asset
Immediately reclassify as inventories
Biological assets
AT YEAR END: Revalue to FV - costs to sell
INITIALLY: recognise at FV - costs to sell
Living plant or animal
Gain / loss in SPL
If FV not available->measure at cost - depreciation
Agricultural grants
Recognise in SPL when conditions met
Inventories: LOWER of
Cost
Average cost
FIFO
Actual cost
Net realisable value
Expected selling price - costs to sell
Agriculture
They are initially recognised at FV-costs to sell
At reporting date they are revalued to FV - costs to sell
The animals are biological assets
The gain on revaluying the herd at the reporting date is $168
1 Jan 20x3 (5 animals x$200) $1,000
Purchases ( 1 animal x $212) $212
At 31 Dec x3 (6 animals x $230) $1,380
FV gain
Inventories
$72.50 / 15 units = $4.83 per unit
Closing inventory = 8 units x $4.83 = $38.64
(5units x $4)+ (5units x $5) + (5 units x $5.5) = $72.50
Weighted average
Bearer plants: PPE