Which of the following accounting methods is permitted under IFRS when accounting for biological assets and agricultural produce?
A)Cost
B)Selling price less cost to sell
C)Fair value less cost to sell
D)NRV

Question

Quizplus · Accepted Answer

Under IFRS, biological assets and agricultural produce can be measured at fair value less cost to sell. This means that the assets are valued at the market value they would fetch less any costs required to bring them to market. This method is commonly used for agricultural assets which are subject to significant price fluctuations, and allows for more accurate reporting of the value of these assets on financial statements. The other methods listed (cost, selling price less cost to sell, and NRV) may be used under certain circumstances, but fair value less cost to sell is the most commonly used method for agricultural assets under IFRS.

Which of the Following Accounting Methods Is Permitted Under IFRS