Chapter 8 - Agriculture 1
Chapter 8 - Agriculture 1
Chapter 8 - Agriculture 1
&
Accounting for non-profit organizations
Learning Objectives
1. Differentiate between the following:
biological assets, agricultural produce and
inventory.
2. State the initial and subsequent
measurements of biological assets and
agricultural produce.
• Agricultural produce - initially measured at fair value less costs to sell at the
point of harvest. Gain arising from the initial measurement is recognized in
surplus or deficit.
GOVT ACCTG & ACCTG FOR NPOs by: Z.B.Mi
llan
Cost to Sell
- are the incremental costs directly
attributable to the disposal of an asset,
excluding finance costs and income taxes
Bearer Biological Assets – are those that are self-generating and are
used repeatedly for more than one year.
Examples: dairy cattle held for production of milk, fruit trees, and trees
from which firewood is harvested while the tree remains.
d. The amount of change in fair value less costs to sell due to physical
changes and due to price changes.