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International GAAP 2012: Generally Accepted Accounting Practice under International Financial Reporting Standards by Ernst & Young

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Chapter 40

Agriculture

1 Introduction

2 Objective, Definitions and Scope

2.1 Objective

2.2 Definitions

2.2.1 Agriculture-related definitions

2.2.2 General definitions

2.3 Scope

2.3.1 Biological assets outside the scope of IAS 41

2.3.2 Agricultural produce before and after harvest

2.3.3 Products that are the result of processing after harvest

2.3.4 Leased assets

2.3.5 Concessions

3 Recognition and Measurement Principles

3.1 Recognition

3.1.1 Control

3.2 Measurement

3.2.1 Biological assets

3.2.1.A Initial and subsequent measurement

3.2.1.B Subsequent expenditure

3.2.2 Agricultural produce

3.2.3 Gains and losses

3.2.4 Inability to measure fair value reliably

3.2.4.A Rebutting the presumption

3.2.4.B The cost model

3.3 Government grants

4 Determining Fair Value Less Costs to Sell

4.1 The interaction between IAS 41 and IFRS 13 – Fair Value Measurement

4.2 Establishing ‘what’ to measure

4.2.1 Current condition and location

4.2.1.A Biological assets attached to land

4.2.1.B Obligation to replant a biological asset after harvest

4.2.2 Grouping of assets

4.3 Determining costs to sell

4.4 Determining fair value

4.4.1 The fair value hierarchy

4.4.2 Determining fair value in an active market

4.4.3 Determining fair value where there is no active market

4.4.3.A Market-determined prices or values

4.4.3.B Discounted cash flows

4.4.3.C Cost as an approximation of fair value

4.4.4 Use of external independent valuers

4.4.5 Forward sales contracts

4.4.6 Onerous contracts

4.5 The problem of measuring ...

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