INTERMEDIATE ACCOUNTING 1 – REVIEWER
BACHELOR OF SCIENCE IN ACCOUNTANCY 2-1
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES – TAGUIG
PROF. U.C. VALLADOLID
MODULE 4 – BIOLOGICAL ASSETS
ADIAEN, Carmelyn D.
1. Which are true about biological assets?
a. A gain or loss may arise on initial recognition of agricultural produce as a result of harvesting.
b. A gain may arise on initial recognition of a biological asset.
c. Statement a only
d. Statement b only
e. Both a and b
ADRIANO, Glecy C.
2. Which of the following statements is true regarding agricultural produce?
a. In all cases, an entity shall measure agricultural produce at fair value less cost of disposal at the point of harvest
b. The prevailing view is that the fair value of agricultural produce at the point of harvest can always be
measured reliably
c. The fair value measurement of agricultural produce stops at the time of harvest
d. All of these statements are true regarding agricultural produce
ATONG, Jeahana Bairasha H.
3. Where the fair value of the biological asset cannot be determined reliably, the biological asset shall be
measured at
a. Cost
b. Cost less accumulated depreciation
c. Cost less accumulated depreciation and accumulated impairment loss
d. Net realizable value
BALILING, Irish Sofiah R
4. A gain or loss arising on the initial recognition of a biological asset and from a change in fair value
less cost of disposal of a biological asset shall be included in
a. Profit or loss for the period
b. Other comprehensive income
c. A separate revaluation reserve
d. An appropriation reserve
BARBAS, Bernadette C.
5. Which of the following information shall be disclosed in relation to agricultural activity?
a. Separate disclosure of the gain or loss relating to biological asset and agricultural produce
b. The aggregate gain or loss arising on the initial recognition of the biological asset and agricultural produce
and from the change in fair value less cost of disposal of biological asset
c. he total gain or loss from biological asset, agricultural produce, and from changes in fair value less cost of
disposal of biological asset
d. There is no requirement to disclose separately any gain or loss
BATISLA-ON, Melchor A.
6. Which of the following does not result in biological transformations?
a. Degeneration
b. Growth
c. Procreation
d. Production
BERGADO, Fiel Olin D
7. A gain arising from the initial recognition of biological asset should
a. Not recognized
b. Be recognized in other comprehensive income
c. Be recognized as prior period adjustment
d. Be recognized in post-closing trial balance
e. Be recognized in profit or loss
BIGAY, Jackielou S.
8. An entity shall recognize biological assets or an agricultural produce when?
a. The entity controls the asset as a result of past event
b. Probable that future economic benefits will flow to the entity
c. The fair value or cost of the asset can be measured reliably
d. All of the above
BOLAÑOS, Maria Magdaline A.
9. Which of the following would not increase the balance of biological assets?
a. Fair Value Gains due to price change
b. Acquisitions
c. Fair Value Gains due to physical change
d. Sales
BONAGUA, Khyla Alexandrei Q.
10. Which of the following is not an agricultural activity?
a. Raising Livestock
b. Plantation
c. Ocean Fishing
d. Forestry
CADAEG, Lia Desiree C.
11. Shall be applied to account for the biological assets, agricultural produce, government grant related
to biological assets when they relate to agricultural activity.
a. PAS 43
b. PAS 42
c. PAS 41
d. PAS 44
CAPALAD, Ma. Alexandra Nicole H.
12. Which statements are true about the active market?
Statement 1: The items traded within the market are homogeneous, meaning similar or identical in nature or form.
Statement 2: They have willing buyers and sellers.
Statement 3: Prices are available at the market.
a. I and III c. II and III
b. I and II d. I, II, and III
CARPIO, Princess Sharmaine Q.
13. On the initial recognition and on subsequent reporting dates, biological assets shall be measured at
a. Fair value
b. Fair value less costs to sell
c. Cost or fair value less costs sell, whichever is lower
d. Cost or fair value, whichever is lower
CUERDO, Kristine C
14. Changes in the carrying amount of biological assets shall be recognized in
a. Other comprehensive income
b. Retained earnings
c. Profit or loss
d. Profit or loss from discontinued operations
DEL ROSARIO, Ma. Reimilyn M.
15. Subsequent to point of harvest, the agricultural produce shall be measured at
a. fair value less costs to sell at the point of harvest.
b. fair value less costs to sell as of the reporting date.
c. average of fair value less costs to sell during the year.
d. lower of cost and net realizable value.
DELA CRUZ, Kimberly E.
16. PAS 41, Agriculture applies to
a. accounting of all biological assets
b. accounting of all biological assets sold in the ordinary course of business
c. accounting for bearer plants
d. accounting for biological assets, except bearer plants, and agricultural produce at the point of harvest, provided
they relate to agricultural activity
DELOS SANTOS, Mary Rose L.
17. Biological transformation causes qualitative or quantitative change in a biological asset. Which of the
following is considered as biological transformation?
a. Growth and degeneration
b. Procreation
c. Production of agricultural produce
d. All of the above are considered as biological transformations
DISOMIMBA, Jehanisah B.
18. Statement 1: Disclosure of changes in the fair value less costs to sell as classified to price and physical
changes is required by PAS 41
Statement 2: Procreation and harvesting are considered as physical changes.
a. True, True
b. True, False
c. False, True
EMBESTRO, Naida Alexis A.
19. Statement 1: An entity is required to distinguish its biological assets between consumable and bearer
classifications
Statement 2: An entity is encouraged to distinguish its biological assets between mature and
immature classifications.
a. True, True
b. True, False
c. False, True
d. False, False
ENORE, Ronalyn M.
20. Statement 1: Biological assets are living animals or plants
Statement 2. Agricultural produce is the harvested produce of the entity's biological assets
a. True, True
b. True, False
c. False, True
d. False, False
GIERZA, Carol B.
21. An entity had a plantation forest that is likely to be harvested and sold in 30 years. The income should be
accounted for in which of the following way?
a. No income should be reported annually until the first harvest and sale in 30 years
b. Income should be measured annually and reported using a fair value approach that recognizes and measures
biological growth.
c. The eventual sale proceeds should be estimated and matched to the profit and loss account over the 30-
year period.
d. The plantation forest should be valued every 5 years and the increase in value should be shown in the statement
of recognized gains and losses
GONZALES, Jamila Marie P.
22. The following provides examples of biological assets, agricultural produce and products that are the
result of processing after harvest. Which is an incorrect combination?
Biological asset Agricultural produce Product after harvest
a. Trees Felled trees Logs, lumber
b. Dairy cattle Cheese Milk
c. Pigs Carcass Sausage
d. Vines Grapes Wine
23. Ibarra Company is engaged in raising dairy livestock. Information regarding activities relating to the
dairy livestock during the current year is as follows:
Carrying amount on January 1 5,000,000
Increase due to purchases 2,000,000
Gain arising from change in fair value less cost of disposal
attributable to price change 400,000
Gain arising from change in fair value less cost of disposal
attributable to physical change 600,000
Decrease due to sales 850,000
Decrease due to harvest 200,000
What is the carrying amount of the biological asset on December 31?
a. 6,000,000
b. 6,950,000
c. 7,150,000
d. 8,000,000
24. Labuzon Company provided the following data:
Value of biological asset at acquisition cost on Dec. 31, 2022 600,000
Fair valuation surplus on initial recognition at fair value
on Dec. 31, 2022 700,000
Change in fair value to December 31, 2023 due to growth
and price fluctuation 100,000
Decrease in fair value due to harvest 90,000
What is the carrying amount of the biological asset on December 31, 2023?
a. 1,300,000
b. 1,310,000
c. 1,400,000
d. 1,490,000
25. Liberato Company had a herd of 10, 2-year old animals on January 1, 2023. One animal aged 2.5 years
was purchased on July 1, 2023 for P108, and one animal was born on July 1, 2023. No animals were sold
or disposed of during the year. The fair value less cost of disposal per unit is as follows:
2 - year old animal on January 1 100
2.5-year old animal on July 1 108
Newborn animal on July 1 70
2 - year old animal on December 31 105
2.5 - year old animal on December 31 111
Newborn animal on December 31 72
3 - year old animal on December 31 120
0.5 - year old animal on December 31 80
1. What is the fair value of the biological assets on December 31?
a. 1,320
b. 1,400
c. 1,440
d. 1,360
2. What is the gain from change in fair value due to price change?
a. 292
b. 222
c. 237
d. 55
3. What is the gain from change in fair value of biological assets that should be recognized in 2023?
a. 222
b. 332
c. 300
d. 292
26. Malaga Company purchased 2,000 llamas at the beginning of the current year. These llamas will be
sheared semiannually and their wool sold to specialty clothing manufacturers. The llamas were purchased
for P5,000,000. During the current year, the change in fair value due to growth and price changes is P350,000,
the wool harvested but not yet sold is valued at net realizable value of P100,000, and the decrease in fair
value due to harvest is P50,000.
What is the carrying amount of the biological asset at year-end?
a. 5,100,000
b. 5,300,000
c. 5,350,000
d. 5,400,000
27. Malit Company produced mild for sale to local and national producers. The entity began operations at
the beginning of current year by purchasing 650 milk cows for 8,000,000. The entity provided the
following information for the current year:
Acquisition cost, January 1 8,000,000
Change in fair value due to growth and price changes 2,500,000
Decrease in fair value due to harvest 250,000
Milk harvested during the year but not yet sold 400,000
1. What amount of gain on change in fair value should be recognized for biological assets in the current
year?
a. 2,250,000
b. 2,500,000
c. 2,650,000
d. 2,900,000
2. What amount of gain on change in fair value should be reported for agricultural produce in the
current year?
a. 2,250,000
b. 400,000
c. 0
d. 150,000
28. Marange Company provided the following information for the year ended December 31, 2023:
Cash 500,000
Trade and other receivables 1,500,000
Inventories 100,000
Dairy livestock - immature 50,000
Dairy livestock - mature 400,000
Property, plant and equipment, net 1,400,000
Trade and other payables 520,000
Note payable - long-term 1,500,000
Share capital 1,000,000
Retained earnings - January 1 800,000
Fair value of milk produced 600,000
Gain from change in fair value 50,000
Inventories used 140,000
Staff costs 120,000
Depreciation expense 15,000
Other operating expenses 190,000
Income tax expense 55,000
What is the net income for 2023?
a. 130,000
b. 185,000
c. 600,000
d. 650,000
29. Masilang Company provided the following assets in a forest plantation and farm:
Freestanding trees 5,000,000
Land under trees 600,000
Roads in forests 300,000
Animals related to recreational activities 1,000,000
Bearer plants 1,500,000
Bearer animals 2,000,000
What total amount of the assets should be classified as biological assets?
a. 7,000,000
b. 8,500,000
c. 5,000,000
d. 8,000,000
30. Mendoza Company provided the following data:
Value of biological asset at acquisition cost on Dec. 31,2022 600,000
Fair valuation surplus on initial recognition at fair value on Dec. 31, 2022 700,000
Change in fair value to December 31, 2023 due to growth and price fluctuation 100,000
Decrease in fair value due to harvest 90,000
What is the gain from change in fair value of biological assets that should be reported in the 2023 income
statement?
a. 10,000
b. 100,000
c. 710,000
d. 800,000
31. Montemayor Company is a producer of coffee. The entity is considering the valuation of harvested
coffee beans. Industry practice is to value the coffee beans at market value and uses as reference a local
publication “Accounting for Successful Farms”.
On December 31, 2022, the entity harvested coffee beans costing 3,000,000 and with fair value less cost of disposal
of 3,500,000 at point of harvest. Because of the long aging and maturation process after harvest, the harvested
coffee beans were still on hand on December 31, 2023. On such date, the fair value less cost of disposal is
3,900,000 and the net realizable value is 3,200,000.
What is the measurement of the coffee beans inventory on December 31, 2023?
a. 3,000,000
b. 3,500,000
c. 3,200,000
d. 3,900,000
32. Obane Company has reclassified certain assets as biological assets. The total value of the forest
assets is P6,000,000 which comprises:
Free standing trees 5,100,000
Land under trees 600,000
Roads in forests 1,200,000
6,900,000
In the statement of financial position, what total amount of the forest assets should be classified as
biological assets?
a. 5,100,000
b. 5,700,000
c. 6,300,000
d. 6,900,000
33. Pagayunan Company produces milk for sale to local and national ice cream producers. The entity
operations on January 1, 2022 by purchasing 650 milk cow for P8,000,000. The entity had the
following information available at the year-end relating to cows:
Acquisition Cost, January 1, 2019 8,900,900
Change in fair value due to growth and price changes 3,500,000
Decrease in fair value due to harvest 1,250,000
Milk harvested during 2019 but not yet sold 600,000
What amount of gain on change in fair value should [gagsti ka lods, onis ka] should be recognized for
biological asset in 2019?
a. 2,650,000
b. 2,900,000
c. 2,500,000
d. 2,250,000
34. Palaspas Company is in the business of horse farming. A herd of one hundred horses is held
throughout the financial year of 2023. The only change during the year is the increase in their physical
attributes due to aging from two to three years. The relevant data are as follows:
Fair value of a 2-year-old horse at January 1, 2023 P 3,000
Fair value of a 2-year-old horse at December 31, 2023 3,300
Fair value of a 3-year-old horse at December 31, 2023 4,800
How much is the increase in the fair value of the biological asset due to physical change?
a. P30,000
b. P150,000
c. P180,000
d. P480,000
35. Panganiban Company has a herd of 20 1-year-old animals on January 1, 2023. No animals were
bought and sold during the year. The per unit fair value less cost to sell were:
Fair value of a 1-year-old animal at January 1, 2023 P 2,000
Fair value of a 1-year-old animal at December 31, 2023 2,100
Fair value of a 2-year-old animal at December 31, 2023 2,500
How much is the increase in the fair value of the biological asset due to price change?
a. 2,100
b. 2,000
c. 2,500
d. 8,000
36. Romano Company purchased dairy cattle at an auction for P300,000 on July 1, 2023. Cost of transporting
the cattle back to the company’s farm was P3,000 and the company would have incur similar transportation
cost if it was to sell the cattle in the auction in the same year, in addition to an auctioneer’s fee 2% of sales
price.
On December 31, 2016, after taking into account the location, the fair value of the biological assets had
increased to P500,000 (that is the market price including the cost of transporting the asset).
1. The biological asset is initially recognized at what amount?
a. 291,000
b. 294,000
c. 297,000
d. 300,000
2. What amount should the biological assets be reported in the December 31, 2023 statement of
financial position?
a. 497,000
b. 487,000
c. 500,000
d. 490,000
37. The following information pertains to Santos Co.
Sheep 500,000 Wool 6,000
Rubber products 10,000 Thread 3,000
Trees in a timber plantation 95,000 Felled trees 8,000
Maize plants 40,000 Clothing 150,000
Lumber 62,000 Milk 9,000
Pigs 200,000 Carcass 7,000
Roasted peanuts 20,000 Sugar 67,000
Cotton plants 10,000 Harvested cotton 13,000
Peanut plants 5,000 Harvested peanuts 140,000
Sugarcane 25,000 Harvested cane 22,000
Tobacco plants 45,000 Picked leaves 3,000
Tea bushes 800,000 Oil palms 300,000
Dairy cattle 1,000,000 Picked grapes 2,000
1. How much is classified as biological assets that are accounted for under PAS 41
Agriculture?
a. 2,720,000
b. 1,920,000
c. 2,000,000
d. 2,250,000
2. How much is classified as agricultural produce?
a. 149,000
b. 210,000
c. 363,000
d. 510,000
38. The following information pertains to the biological assets owned by Sarmiento Farm Inc.:
Carrying Amount, January 1, 2023 P1,304,560
Purchases 379,264
Gain arising from changes in fair values less
costs to sell attributable to physical change 451,043
Gain arising from changes in fair value less
costs to sell attributable to piece change 581,923
Sales 1,090,450
The carrying amount of the biological assets on December 31, 2023 is?
a. 1,304,506
b. 1,356,286
c. 1,626,340
d. 1,683,824
39. An adoption of Segovia Co. of PAS 41 resulted to the reclassification of certain assets as biological
assets. The total value of the entity’s forest assets is P500 million compromising: freestanding trees P365
million; land under trees P100 million; and roads in forests P35 million. How much should be classified as
biological assets?
a. 135,000,000
b. 365,000,000
c. 465,000,000
d. 500,000,000
40. In Sipat Inc, a herd of 30 5-year old animals was held at January 1, 2023. 5 animals aged 4.5 years
were purchased on July 1, 2023 for 2,000, and 3 animals were born on July 1, 2023. No animals were sold
or dispersed of during the year. Per-unit fair values less costs to sell were as follows:
5-year old animal on January 1, 2021 P1,900
New born animal on July 1, 2021 1,500
4.5-year old animal on July 1, 2021 2,000
New born animal on December 31, 2021 1,750
0.5-year old animal on December 31, 2021 1,850
4.5-year old animal on December 31, 2021 2,200
5-year old animal on December 31, 2021 2,800
6-year old animal on December 31, 2021 3,500
1. Total amount of purchase
a. 14,000
b. 10,000
c. 9,500
d. 5,000
2. Gain from change in fair value of new born
a. 4,500
b. 5,550
c. 1,050
d. 5,250
41. The following information pertains to the biological asset and agricultural produce of Sumanting
Company. The fair value of the company’s vineyard was P25,000,000. As of June 30, 2023,
Sumanting Company determines the following:
Fair value of the grapes harvested at March 31, 2023 P5,000,000
Estimated point-of-sale costs of the grapes 100,000
Estimated point-of-sale costs of the vines 200,000
Fair value of the vines as of March 31, 2023, prior to harvest 31,000,000
Sumanting Company determines that there is no change in fair value of the vines between March 31,
2023 and June 30, 2023. What total amount of gain should Sumanting Company report in its June 30,
2023 as a result of the change in the fair value of the biological asset and agricultural produce?
a. P800,000
b. P1,000,000
c. P4,900,000
d. P5,700,000
42. Tee Company sold some of their biological assets to Turilla Company for P200,000 on July 1, 2023. The
sale was made at Tee’s farm. However, if the biological assets are being sold at an auction, they could have
been sold at a higher price but the company has to incur transportation costs of P2,000. Tee
Company paid P6,000 commission in relation to the sale. Turilla Company incurred P3,000 as transport cost
in bringing the asset to their own farm.
What amount of loss should Turilla Company recognize on initial recognition related to the asset?
a. None
b. P3,000
c. P6,000
d. P9,000
43. Verana Company’s standing cane fair value as of January 1, 2023 was 2,700,000 and as of
December 31, 2023 was 2,250,000. The fair value of the agricultural produce harvested during the period was
2,100,000 on the respective dates of harvest. What net amount of gain or loss should Verana Company report
in its December 31, 2023 profit or loss related to the biological asset and agricultural produced?
a. 310,000
b. 420,000
c. 450,000
d. 870,000
44. Verdan Farm Corporation reported the following lists of biological asset and agricultural produce for the
year ended December 31, 2023:
Dairy cattle 3,000,000
Beef cattle 5,000,000
Sheep 2,000,000
Calves on dairy cattle 1,000,000
Calves on beef cattle 1,500,000
Lambs 800,000
Milk on dairy cattle 500,000
Carcass on beef 600,000
Wool 400,000
What amount of biological assets should Verdan Farm Company report in its December 31, 2023 statement of
financial problem?
a. 6,700,000
b. 13,300,000
c. 14,800,000
d. 10,000,000
ANSWER KEY:
1. E
2. D
3. C
4. A
5. B
6. D
7. E
8. D
9. D
10. C
11. C
12. D
13. B
14. C
15. D
16. D
17. D
18. C
19. C
20. A
21. B
22. B
23. B
Solution:
Carrying amount - January 1 5,000,000
Increase due to purchases 2,000,000
Gain from change in fair value due to price change 400,000
Gain from change in fair value due to physical change 600,000
Decrease due to sales (850,000)
Decrease due to harvest (200,000)
Carrying amount - December 31 6,950,000
24. B
Solution:
Acquisition cost - December 31, 2022 . 600,000
Increase in fair value on initial recognition 700,000
Change in fair value in 2023 100,000
Decrease in fair value due to harvest (90,000)
Carrying amount - December 31, 2023 1,310,000
25. 1. B
Solution:
Fair value of 3 – year old animal on December 31
(11 x 120) 1,320
Fair value of 0.5 – year old animal on December 31
The new born (1 x 80) 80
Total fair value – December 31 1,400
2. D
Solution:
Gain from change in fair value due to price change:
10 2-year old animals (105-100 = 5x10) 50
1 2.5-year old animal (111-108 = 3 x 1) 3
1 newborn on July 1 (72 - 70 = 2 x 1) 2
Total 55
Gain from change in fair value due to physical change:
10 3-year old animals acquired 1/1/2023 (120-105 = 15 x 10) 150
1 3-year old animal acquired 7/1/2023 (120-111 = 9 x 1) 9
1 0.5-year old born on 7/1/2023 (80-72 = 8 x 1) 8
1 newborn (70 x 1) 70
Total 237
3. D
Solution:
Price change 55
Physical change 237
Total gain from change in fair value 292
26. B
Solution:
Purchase price 5,000,000
Change in fair value due to growth & price changes 350,000
Decrease in fair value due to harvest (50,000)
Carrying cost 5,300,000
27. 1. A
Solution:
Change in fair value due to growth and price changes 2,500,000
Decrease in fair value due to harvest (250,000)
Net gain from biological asset 2,250,000
2. B
Inventory 400,000
Gain on agricultural produce 400,000
28. A
Solution:
Fair value of milk produced 600,000
Gain from change in fair value 50,000
Total income 650,000
Inventories used (140,000)
Staff costs (120,000)
Depreciation expense (15,000)
Other operating expenses (190,000)
Income before income tax 185,000
Income tax expense (55,000)
Net income 130,000
29. A
Solution:
Freestanding trees 5,000,000
Bearer animals 2,000,000
Biological assets 7,000,000
30. A
Solution:
Change in fair value in 2023 100,000
Decrease in fair value due to harvest (90,000)
Net gain from change in fair value in 2023 10,000
31. C
Explanation: Fair value measurement stops at the point of harvest and PAS 2 on inventory applies after
such date. The net realizable value of 3,200,000 is the measurement on December 31, 2023 because this is
lower than the deemed cost of 3,500,000.
32. A
Freestanding trees 5,100,000
Explanation:
Only the freestanding shall be classified as biological assets. The land under the trees and roads in the
forests shall be classified as part of the property, plant, and equipment.
33. D
Solution:
Change in fair value due to growth and price changes 3,500,000
Decrease in fair value due to harvest (1,250,000)
Net gain from biological asset 2,250,000
34. B
Solution:
Fair value of 3-year-old at December 31, 2023 P 4,800
Fair value of 2-year-old at December 31, 2023 (3,300)
1,500
Multiply by Quantity 100
Gain from physical change 150,000
35. B
Solution:
Fair value of a 1-year-old animal at December 31, 2022 P 2,100
Fair value of a 1-year-old animal at January 1, 2022 2,000
100
Multiply by Quantity 20
Gain from price change 2,000
36. 1. A
Solution:
Purchase Price P300,000
Less:
Cost of transporting 3,000
Auctioneer's fee (300k x 2%) 6,000
Total 291,000
2. B
Solution:
Market Price P300,000
Less:
Cost of transporting 3,000
Auctioneer's fee (500k x 2%) 13,000
Total 487,000
37. 1. B
Solution:
Sheep 500,000
Trees in a timber plantation 95,000
Maize plants 40,000
Pigs 200,000
Cotton plants 10,000
Peanut plants 5,000
Sugarcane 25,000
Tobacco plants 45,000
Dairy cattle 1,000,000
Total 1,920,000
2. B
Solution:
Wool 6,000
Felled trees 8,000
Milk 9,000
Carcass 7,000
Harvested cotton 13,000
Harvested peanuts 140,000
Harvested cane 22,000
Picked leaves 3,000
Picked grapes 2,000
Total 210,000
38. C
Solution:
Carrying amount, Jan 1 1,304,560
Purchases 379,264
Gain from physical change 451,043
Gain from price change 581,923
Total 2,716,790
Less:Sales (1,090,450)
Carrying amount, Dec 31 1,626,340
39. B
Freestanding trees P365,000,000
40. 1. B
Solution:
Purchased 4.5 years old animals
Unit price 2,000
Quantity 5
Total 10,000
2. A
Solution:
New born, July 1 3
Unit costs-July 1 1,500
Total 4,500
41. D
Solution:
Fair value of the vines as of March 31, 2023, prior to harvest P31,000,000
Fair value of the company’s vineyard (25,000,000)
Estimated point-of-sale costs of the grapes (100,000)
Estimated point-of-sale costs of the vines (200,000)
Total P5,700,000
42. D
Solution:
Sales Commission 6,000
Transport cost 3,000
Total 9,000
43. A
Solution:
Total value fair end of year
Biological asset 450,000
Agricultural produced 420,000 870,000
Less: fair value start of year 560,000
Net increase in fair value to profit or loss 310,000
44. B
Solution
Mature biological assets:
Dairy cattle 3,000,000
Beef cattle 5,000,000
Sheep 2,000,000 P10,000,000
Immature biological assets:
Calves on dairy cattle 1,000,000
Beef cattle 1,500,000
Lambs 800,000 3,300,000
Total fair value of biological assets P13,300,000
