Brought to bear

The amendments are principally based on the International Accounting Standards Board (IASB) Issues Paper on IAS 41 Agriculture. Essentially, with the amendments, bearer plants would -

Come under the scope of MFRS 116/IAS 16 and would be accounted for in the same way as property, plant and equipment using a fair value model with change recognised in profit and loss

Remain under the scope of MFRS 141/IAS 41 and be accounted for based on cost less accumulated depreciation and impairment losses

Come under the scope of MFRS 116/IAS 16 and would be accounted for in the same way as property, plant and equipment

Remain under the scope of MFRS 141/IAS 41 and be accounted for based on fair value less cost to sell

Which of the following statements relate to the treatment of agriculture produce growing on bearer plants under the amendments to MFRS141/IAS 41?

Agriculture produce will continue to be scoped in MFRS141/IAS 41 and will be measured at fair value less costs to sell, with changes recognised in profit or loss

Agriculture produce will now be scoped into MFRS116/IAS 16 together with the bearer plant and treated the same way as property, plant and equipment using the cost model

Agriculture produce will now be scoped into MFRS101/IAS 2 together with the bearer plant and treated the same way as inventories and recognised at lower of cost and fair value less cost to sell

Agriculture produce will now be scoped into MFRS116/IAS 16 together with the bearer plant and treated the same way as property, plant and equipment using the revaluation model

Which of the following best describes the subsequent measurement of bearer plants under the amendments to MFRS 141/IAS 41?

Changes in fair value to bearer plants is recognised in profit and loss

The plant and attached produce is measured at fair value less cost to sell at each reporting date as a single unit

Bearer plant is measured at cost less accumulated depreciation and impairment losses with changes recognised in reserves

Bearer plant is measured at fair value at each revaluation date, less subsequent accumulated depreciation and impairment losses. Revaluation changes are dealt with in comprehensive income, while all other changes are recognised in profit and loss

What are the accounting standards that are affected or contain changes as a result to IASB/MASB amendments to biological assets relating to bearer plants?

MFRS 141/IAS 41

MFRS 116/IAS 16, MFRS 101/IAS 1 and MFRS 120/IAS 20

MFRS 116/IAS 16 and MFRS 141/IAS 41

MFRS 116/IAS 16, MFRS 141/IAS 41 and MFRS 120/IAS 20

When would agriculture-based Transiting Entities in Malaysia required to adopt the MFRS Framework?

15 December 2016

1 January 2017

15 December 2017

1 January 2016

What is the main reason for the amendments made by MASB/IASB to MFRS 141/IAS 41 Agriculture relating to bearer plants?

Concerns about the relevance and usefulness of using a fair value model to account for mature bearer biological assets, which no longer undergo significant biological transformation and are used solely to grow produce

Concerns about the relevance and usefulness of the extensive disclosure requirements for mature bearer biological assets, which no longer undergo significant biological transformation and are used solely to grow produce

Concerns about the relevance and usefulness of using a cost model to account for mature bearer biological assets, which still undergo significant biological transformation and are used solely to grow produce

Concerns from regulators on the legality of using the fair value model to account for mature bearer biological assets, which no longer undergo significant biological transformation and are used solely to grow produce

Which will be the most likely classification of bearer plants which have a useful life of more than 12 months?

Current assets

Current liabilities

Equity

Non-current assets

Under the amendments to MFRS 141/IAS 41 and corresponding changes to MFRS 116/IAS 16, a bearer plant is defined as a living plant that fulfil the following criteria, EXCEPT -

Has a remote likelihood of being sold as agricultural produce, except for incidental scrap sales

Has attached produced and is viewed as a single asset

Is expected to bear produce for more than one period

Is used in the production or supply of agricultural produce

Which of the following statements are TRUE in relation to biological assets and bearer plants under MFRS 141/IAS 41?

Biological assets which were no longer undergoing significant biological transformation and used solely to grow produce have been excluded from the fair value scope of MFRS 141/IAS 41 and now accounted for based on MFRS 140/IAS 40

Before the amendments came into effect, MFRS 141 or IAS 41 required all biological assets to be measured at fair value less cost to sell, except in circumstances where fair value cannot be measured reliably

In the case of mature biological assets which were no longer undergoing significant biological transformation and used solely to grow produce, a fair value measurement basis was deemed appropriate

The amendments to MFRS 141/IAS 41 has no effect and impact in the accounting treatment to bearer plants

Which of the following plants would satisfy the conditions to be regarded and accounted for as bearer plants under the amended MFRS 141/IAS 41 and MFRS 116/IAS 16?

Rubber trees where their lumber is to be sold and oats

Grape vines and oil palm

Sheep, cattle and poultry

Wheat, corn and soya

The amendments are principally based on the International Accounting Standards Board (IASB) Issues Paper on IAS 41 Agriculture. Essentially, with the amendments, bearer plants would -

Which of the following statements relate to the treatment of agriculture produce growing on bearer plants under the amendments to MFRS141/IAS 41?

Which of the following best describes the subsequent measurement of bearer plants under the amendments to MFRS 141/IAS 41?

What are the accounting standards that are affected or contain changes as a result to IASB/MASB amendments to biological assets relating to bearer plants?

When would agriculture-based Transiting Entities in Malaysia required to adopt the MFRS Framework?

What is the main reason for the amendments made by MASB/IASB to MFRS 141/IAS 41 Agriculture relating to bearer plants?

Which will be the most likely classification of bearer plants which have a useful life of more than 12 months?

Under the amendments to MFRS 141/IAS 41 and corresponding changes to MFRS 116/IAS 16, a bearer plant is defined as a living plant that fulfil the following criteria, EXCEPT -

Which of the following statements are TRUE in relation to biological assets and bearer plants under MFRS 141/IAS 41?

Which of the following plants would satisfy the conditions to be regarded and accounted for as bearer plants under the amended MFRS 141/IAS 41 and MFRS 116/IAS 16?

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