The document discusses various accounting treatments for agricultural activities according to Indian GAAP, IFRS, and opinions from the Expert Advisory Committee. Key points include:
- Expenditure on timber plantations should be disclosed as work-in-progress and valued at lower of cost or net realizable value over 10-12 years until maturity.
- No fixed period can be set for capitalizing expenditure on coconut and cashewnut plantations, but commercial production begins when produce is commercially exploited through sale or manufacture.
- Orchid plants and associated costs should be treated as fixed assets and capitalized until commercial exploitation, with various other guidelines provided.
- Issues around fair value measurement of biological assets
A presentation on Property, Plant & Equipment (PPE)-IAS 16, Prepared by a few students of Dept. of Accounting & Info. Systems, Jahangirnagar University, Savar, Dhaka
This document defines key terms and outlines the accounting standards for agricultural activity under IND AS 41. It covers the scope, definitions of biological assets and agricultural produce, recognition and measurement at fair value less costs to sell for biological assets and agricultural produce at harvest, treatment of government grants, and disclosure requirements including presentation of biological assets separately on the balance sheet and disclosures of quantities, risks, and fair value changes.
The document provides an overview of accounting for inventories under Ind AS 2. Some key points:
1. Inventories represent assets held for sale, in production, or to be consumed in production/rendering services. Objectives of Ind AS 2 are determining inventory cost and value, treatment on revenue recognition, and cost formulas.
2. Inventory cost includes purchase cost, conversion cost (direct labor, variable/fixed overheads), and other costs to bring inventory to present location/condition. Inventory is valued at lower of cost or net realizable value.
3. Net realizable value is estimated selling price less costs to sell. Inventories are written down to NRV if damaged, obsolete or if
Ind AS 2 establishes the accounting treatment for inventory. It requires inventory to be measured at the lower of cost or net realizable value. Cost includes all costs of purchase, conversion, and other costs to bring inventory to its present location and condition. Companies must disclose their accounting policies for inventory valuation and provide details on inventory amounts, write-downs, and reversals in the financial statements. Certain biological assets, agricultural products, minerals, and broker-held commodities are exempt from the standard's requirements.
This document outlines accounting standards for valuing inventories. It defines inventories as assets held for sale, in production, or as materials used in production. Inventories should be valued at the lower of cost or net realizable value. Cost includes purchase price, conversion costs, and other costs to bring inventories to their present state. Net realizable value is estimated selling price less costs to complete and sell. Accepted cost flow methods for valuing inventories include FIFO, LIFO, and weighted average cost. Financial statements must disclose the accounting policy, cost formula used, and inventory classifications.
Accounting Standard - 28 Impairment Of AssetsCA Jimmit Mehta
This document provides an overview of Accounting Standard 28 regarding impairment of assets. It outlines the objective to ensure assets are carried at no more than their recoverable amount. The standard is applicable to companies listed or in the process of listing with a turnover over 50 crores from 2004, and all other enterprises from 2005. Assets should be tested for impairment if there are any internal or external indicators, such as obsolescence, declines in value or performance. The recoverable amount is the higher of an asset's net selling price or value in use, which is the present value of estimated future cash flows. Impairment losses must be accounted for when the recoverable amount is less than the carrying amount.
This document summarizes the key principles of IAS 2 regarding the accounting treatment for inventories. It defines inventories as assets held for sale, in production, or as materials/supplies. Inventories must be measured at the lower of cost or net realizable value, where net realizable value is the estimated selling price less costs to complete and sell. Cost includes purchase costs, conversion costs, and other costs to bring inventories to their present condition and location. Certain costs like abnormal losses or selling costs are excluded.
A presentation on Property, Plant & Equipment (PPE)-IAS 16, Prepared by a few students of Dept. of Accounting & Info. Systems, Jahangirnagar University, Savar, Dhaka
This document defines key terms and outlines the accounting standards for agricultural activity under IND AS 41. It covers the scope, definitions of biological assets and agricultural produce, recognition and measurement at fair value less costs to sell for biological assets and agricultural produce at harvest, treatment of government grants, and disclosure requirements including presentation of biological assets separately on the balance sheet and disclosures of quantities, risks, and fair value changes.
The document provides an overview of accounting for inventories under Ind AS 2. Some key points:
1. Inventories represent assets held for sale, in production, or to be consumed in production/rendering services. Objectives of Ind AS 2 are determining inventory cost and value, treatment on revenue recognition, and cost formulas.
2. Inventory cost includes purchase cost, conversion cost (direct labor, variable/fixed overheads), and other costs to bring inventory to present location/condition. Inventory is valued at lower of cost or net realizable value.
3. Net realizable value is estimated selling price less costs to sell. Inventories are written down to NRV if damaged, obsolete or if
Ind AS 2 establishes the accounting treatment for inventory. It requires inventory to be measured at the lower of cost or net realizable value. Cost includes all costs of purchase, conversion, and other costs to bring inventory to its present location and condition. Companies must disclose their accounting policies for inventory valuation and provide details on inventory amounts, write-downs, and reversals in the financial statements. Certain biological assets, agricultural products, minerals, and broker-held commodities are exempt from the standard's requirements.
This document outlines accounting standards for valuing inventories. It defines inventories as assets held for sale, in production, or as materials used in production. Inventories should be valued at the lower of cost or net realizable value. Cost includes purchase price, conversion costs, and other costs to bring inventories to their present state. Net realizable value is estimated selling price less costs to complete and sell. Accepted cost flow methods for valuing inventories include FIFO, LIFO, and weighted average cost. Financial statements must disclose the accounting policy, cost formula used, and inventory classifications.
Accounting Standard - 28 Impairment Of AssetsCA Jimmit Mehta
This document provides an overview of Accounting Standard 28 regarding impairment of assets. It outlines the objective to ensure assets are carried at no more than their recoverable amount. The standard is applicable to companies listed or in the process of listing with a turnover over 50 crores from 2004, and all other enterprises from 2005. Assets should be tested for impairment if there are any internal or external indicators, such as obsolescence, declines in value or performance. The recoverable amount is the higher of an asset's net selling price or value in use, which is the present value of estimated future cash flows. Impairment losses must be accounted for when the recoverable amount is less than the carrying amount.
This document summarizes the key principles of IAS 2 regarding the accounting treatment for inventories. It defines inventories as assets held for sale, in production, or as materials/supplies. Inventories must be measured at the lower of cost or net realizable value, where net realizable value is the estimated selling price less costs to complete and sell. Cost includes purchase costs, conversion costs, and other costs to bring inventories to their present condition and location. Certain costs like abnormal losses or selling costs are excluded.
The document provides an overview of accounting for intangible assets under IAS 38. It discusses the definition of intangible assets, recognition criteria, measurement at cost or fair value, amortization of intangible assets with finite useful lives, impairment testing, and disclosure requirements. The document also covers topics such as government grants, internally generated intangible assets, revaluation model, and differences between IFRS and Indian GAAP treatment of intangible assets.
This document discusses the valuation and accounting of inventory. It defines inventory as assets held for sale, in production, or as supplies. Inventory should be valued at the lower of cost or net realizable value. Cost includes all purchase costs, conversion costs like direct labor and allocated overheads, and other costs to bring inventory to its present condition. Common costing methods are specific identification, FIFO, and weighted average. Disclosures include accounting policies and total inventory carrying amounts.
IAS 41 Agriculture provides guidance on accounting for biological assets and agricultural produce. It requires that biological assets and agricultural produce be measured at fair value less costs to sell, with changes in fair value recognized in profit or loss. If fair value cannot be reliably measured, biological assets are measured at cost less depreciation and impairment. Extensive disclosures are required, including reconciliation of changes in biological assets, descriptions of groups of biological assets, and information on government grants.
This document provides an overview of IAS 21, which sets out the accounting treatment for foreign currency transactions and foreign operations. It defines key terms like functional currency, foreign currency, spot exchange rate, and closing rate. The standard specifies that foreign currency transactions should be initially recorded using the spot exchange rate and revalued at each reporting date using the closing rate for monetary items. Exchange differences arising from such revaluations should be recognized in profit or loss. It also addresses how to determine functional currency and the translation of financial statements into a presentation currency.
This document provides an overview of IAS 2 on inventories. The objectives of IAS 2 are to prescribe the accounting treatment for inventories and determine the amount of cost to be recognized as an asset. Inventories are assets held for sale, in production, or in the form of materials used in production. Inventories must be measured at the lower of cost or net realizable value. Cost includes all purchase, conversion and other costs to bring inventories to their present condition. Inventories are recognized as an expense when sold. Financial statement disclosures on inventories are also required.
International accounting standard 41 agricultureIvan Kovacic
IAS 41 provides guidance on accounting for biological assets and agricultural produce. It defines agricultural activity as the management of biological transformation of living animals and plants into agricultural produce or biological assets for sale. Key requirements include:
- Biological assets must be measured at fair value less costs to sell, except when fair value cannot be measured reliably.
- Changes in fair value of biological assets are included in profit or loss for the period they arise.
- Government grants related to biological assets measured at fair value less costs to sell must be recognized in profit or loss when receivable.
This document outlines the accounting policies, changes in estimates and errors per Ind AS 8. It discusses the hierarchy for selecting accounting policies, requirements for disclosing accounting policies and judgments, and how to account for changes in policies, estimates and errors. When a policy changes due to a new standard, it is applied retrospectively with prior periods restated. Changes in estimates are applied prospectively. Errors are corrected by restating prior periods presented in the first set of financial statements after discovery. Limitations and disclosure requirements are also outlined.
International Financial Reporting Standards, commonly called IFRS, are accounting standards issued by the IFRS Foundation and the International Accounting Standards Board
The balance sheet shows a snapshot of a business' financial position at a point in time. It lists the business' assets, liabilities, and capital. Assets are what the business owns, like equipment, inventory, and cash. Liabilities are what the business owes, such as loans and accounts payable. Capital represents the owner's investment in the business. The balance sheet ensures that assets always equal the sum of liabilities and capital.
This document provides an overview of Accounting Standard 10 (AS-10) regarding the accounting treatment of fixed assets. It defines fixed assets and outlines their presentation in financial statements using either historical cost or revalued amounts. The document discusses the calculation of historical cost, accounting for self-constructed and exchanged assets, and the treatment of revaluations. It also covers improvements, additions, disposals, and the required disclosures regarding fixed assets. The presentation was created by students at L.J Institute of Management Studies in Ahmedabad, Gujarat to explain AS-10 on accounting for fixed assets.
IAS 16 provides guidance on accounting for property, plant and equipment. It requires initial recognition of assets at cost and subsequent measurement using either the cost model or revaluation model. It also provides guidance on depreciation, derecognition, and disclosures of property, plant and equipment. Some key differences from Indian GAAP include requirements for regular revaluation, a component approach for depreciation, and capitalization of certain subsequent expenditures.
IAS 17 provides guidance on accounting for leases. Key aspects include classifying leases as either finance or operating based on transfer of risks and rewards of ownership. Lessees account for finance and operating leases differently, with finance leases requiring recognition of leased assets and liabilities on the balance sheet. Lessors also account for finance and operating leases differently, with finance leases requiring recognition of a net investment receivable that is amortized over the lease term to achieve a constant rate of return. Sale and leaseback transactions are also addressed.
Hi Everyone,
In this Powerpoint Presentation I have discussed about the Accounting Standard-10 on Property, Plant & Equipment issued by ICAI. I have covered all the major topics such as measurement of PPE, Depreciation(Which was previously covered under AS-6 now deleted), Initial Recognition, Subsequent Recognition etc.
The document summarizes financial statement analysis. It discusses the objectives of financial statements which are to provide information for economic decisions, about financial position, performance, and changes in financial position. It then defines financial statement analysis as studying relationships among factors disclosed in statements. Analysis allows evaluation of a firm's position and performance. Objectives of analysis include judging financial health, profitability, debt capacity, and solvency. Types of analysis include external, internal, horizontal, and vertical. Methods include common size statements, comparative statements, trend ratios, and ratio, funds flow, cash flow, break-even, and value added analysis.
Standard costs are developed using formulas, supplier lists, or time studies and compared to actual costs to calculate variances which should be investigated if significant, with variances for direct materials including price, quantity, mix and yield and variances for direct labor including rate, efficiency, mix, yield and idle time.
This document summarizes Accounting Standard 10 on Property, Plant and Equipment. It describes the objectives, scope, definitions and accounting treatment for PPE. Key points include: the standard establishes principles for recognition, measurement, presentation and disclosure of PPE; assets qualifying as PPE must be held for use in production or supply of goods/services and have a useful life of more than one year; PPE is initially measured at cost and subsequently using either the cost or revaluation model; depreciation is charged over the useful life of an asset using methods like straight line or diminishing balance; and gains or losses on disposal of PPE are included in profit or loss.
This document summarizes Accounting Standards 1-15 presented by Dr. Rana Singh. It discusses the key aspects of each standard including disclosure of accounting policies, valuation of inventories, cash flow reporting, contingencies, revenue recognition, depreciation accounting, construction contracts, research and development, and accounting for changes in policies. It also provides examples of how some large Indian companies apply the standards in their financial reporting and accounting policies.
IAS-1: Presentation of Financial StatementsAmit Sarkar
IAS 1 Presentation of Financial Statements sets out the overall requirements for financial statements, including how they should be structured, the minimum requirements for their content and overriding concepts such as going concern, the accrual basis of accounting and the current/non-current distinction. The standard requires a complete set of financial statements to comprise a statement of financial position, a statement of profit or loss and other comprehensive income, a statement of changes in equity and a statement of cash flows.
This document provides an overview of IND AS 41 - Agriculture. It discusses the objective, scope, key definitions, recognition, measurement and disclosure requirements of the standard. The standard relates to accounting for agricultural activity, including biological assets and agricultural produce. It requires biological assets and agricultural produce to be measured at fair value less costs to sell, except when fair value cannot be measured reliably. The document provides examples of biological assets and the resulting agricultural produce, and outlines the recognition criteria and disclosures required by the standard.
This document provides an overview of IAS 16, which establishes the accounting requirements for property, plant and equipment. It defines key terms, outlines the requirements for recognition, measurement, depreciation, impairment, derecognition and disclosure of property, plant and equipment. The standard aims to prescribe the accounting treatment for PPE, including how to determine the carrying amount and calculate depreciation charges and impairment losses. It applies to tangible items used in operations or for administrative purposes that are expected to be used for more than one period.
This document provides guidance on IAS 41, which establishes the accounting and reporting standards for biological assets and agricultural produce. It defines key terms related to agricultural activity and biological transformation. Biological assets must be measured at fair value less costs to sell at initial recognition and each reporting date. Gains and losses from changes in fair value are recognized in profit or loss. Government grants related to biological assets are recognized as income based on certain conditions. Extensive disclosures are required regarding biological assets and measurement methods.
IAS 41 establishes standards for accounting for agricultural activity, which involves the biological transformation of living plants and animals into agricultural produce or harvested products. It requires biological assets and agricultural produce to be measured at fair value less costs to sell, except when fair value cannot be reliably measured. IAS 41 also specifies disclosure requirements regarding gains and losses on biological assets, descriptions and quantities of biological assets and produce, and reconciliations of changes in biological asset values.
The document provides an overview of accounting for intangible assets under IAS 38. It discusses the definition of intangible assets, recognition criteria, measurement at cost or fair value, amortization of intangible assets with finite useful lives, impairment testing, and disclosure requirements. The document also covers topics such as government grants, internally generated intangible assets, revaluation model, and differences between IFRS and Indian GAAP treatment of intangible assets.
This document discusses the valuation and accounting of inventory. It defines inventory as assets held for sale, in production, or as supplies. Inventory should be valued at the lower of cost or net realizable value. Cost includes all purchase costs, conversion costs like direct labor and allocated overheads, and other costs to bring inventory to its present condition. Common costing methods are specific identification, FIFO, and weighted average. Disclosures include accounting policies and total inventory carrying amounts.
IAS 41 Agriculture provides guidance on accounting for biological assets and agricultural produce. It requires that biological assets and agricultural produce be measured at fair value less costs to sell, with changes in fair value recognized in profit or loss. If fair value cannot be reliably measured, biological assets are measured at cost less depreciation and impairment. Extensive disclosures are required, including reconciliation of changes in biological assets, descriptions of groups of biological assets, and information on government grants.
This document provides an overview of IAS 21, which sets out the accounting treatment for foreign currency transactions and foreign operations. It defines key terms like functional currency, foreign currency, spot exchange rate, and closing rate. The standard specifies that foreign currency transactions should be initially recorded using the spot exchange rate and revalued at each reporting date using the closing rate for monetary items. Exchange differences arising from such revaluations should be recognized in profit or loss. It also addresses how to determine functional currency and the translation of financial statements into a presentation currency.
This document provides an overview of IAS 2 on inventories. The objectives of IAS 2 are to prescribe the accounting treatment for inventories and determine the amount of cost to be recognized as an asset. Inventories are assets held for sale, in production, or in the form of materials used in production. Inventories must be measured at the lower of cost or net realizable value. Cost includes all purchase, conversion and other costs to bring inventories to their present condition. Inventories are recognized as an expense when sold. Financial statement disclosures on inventories are also required.
International accounting standard 41 agricultureIvan Kovacic
IAS 41 provides guidance on accounting for biological assets and agricultural produce. It defines agricultural activity as the management of biological transformation of living animals and plants into agricultural produce or biological assets for sale. Key requirements include:
- Biological assets must be measured at fair value less costs to sell, except when fair value cannot be measured reliably.
- Changes in fair value of biological assets are included in profit or loss for the period they arise.
- Government grants related to biological assets measured at fair value less costs to sell must be recognized in profit or loss when receivable.
This document outlines the accounting policies, changes in estimates and errors per Ind AS 8. It discusses the hierarchy for selecting accounting policies, requirements for disclosing accounting policies and judgments, and how to account for changes in policies, estimates and errors. When a policy changes due to a new standard, it is applied retrospectively with prior periods restated. Changes in estimates are applied prospectively. Errors are corrected by restating prior periods presented in the first set of financial statements after discovery. Limitations and disclosure requirements are also outlined.
International Financial Reporting Standards, commonly called IFRS, are accounting standards issued by the IFRS Foundation and the International Accounting Standards Board
The balance sheet shows a snapshot of a business' financial position at a point in time. It lists the business' assets, liabilities, and capital. Assets are what the business owns, like equipment, inventory, and cash. Liabilities are what the business owes, such as loans and accounts payable. Capital represents the owner's investment in the business. The balance sheet ensures that assets always equal the sum of liabilities and capital.
This document provides an overview of Accounting Standard 10 (AS-10) regarding the accounting treatment of fixed assets. It defines fixed assets and outlines their presentation in financial statements using either historical cost or revalued amounts. The document discusses the calculation of historical cost, accounting for self-constructed and exchanged assets, and the treatment of revaluations. It also covers improvements, additions, disposals, and the required disclosures regarding fixed assets. The presentation was created by students at L.J Institute of Management Studies in Ahmedabad, Gujarat to explain AS-10 on accounting for fixed assets.
IAS 16 provides guidance on accounting for property, plant and equipment. It requires initial recognition of assets at cost and subsequent measurement using either the cost model or revaluation model. It also provides guidance on depreciation, derecognition, and disclosures of property, plant and equipment. Some key differences from Indian GAAP include requirements for regular revaluation, a component approach for depreciation, and capitalization of certain subsequent expenditures.
IAS 17 provides guidance on accounting for leases. Key aspects include classifying leases as either finance or operating based on transfer of risks and rewards of ownership. Lessees account for finance and operating leases differently, with finance leases requiring recognition of leased assets and liabilities on the balance sheet. Lessors also account for finance and operating leases differently, with finance leases requiring recognition of a net investment receivable that is amortized over the lease term to achieve a constant rate of return. Sale and leaseback transactions are also addressed.
Hi Everyone,
In this Powerpoint Presentation I have discussed about the Accounting Standard-10 on Property, Plant & Equipment issued by ICAI. I have covered all the major topics such as measurement of PPE, Depreciation(Which was previously covered under AS-6 now deleted), Initial Recognition, Subsequent Recognition etc.
The document summarizes financial statement analysis. It discusses the objectives of financial statements which are to provide information for economic decisions, about financial position, performance, and changes in financial position. It then defines financial statement analysis as studying relationships among factors disclosed in statements. Analysis allows evaluation of a firm's position and performance. Objectives of analysis include judging financial health, profitability, debt capacity, and solvency. Types of analysis include external, internal, horizontal, and vertical. Methods include common size statements, comparative statements, trend ratios, and ratio, funds flow, cash flow, break-even, and value added analysis.
Standard costs are developed using formulas, supplier lists, or time studies and compared to actual costs to calculate variances which should be investigated if significant, with variances for direct materials including price, quantity, mix and yield and variances for direct labor including rate, efficiency, mix, yield and idle time.
This document summarizes Accounting Standard 10 on Property, Plant and Equipment. It describes the objectives, scope, definitions and accounting treatment for PPE. Key points include: the standard establishes principles for recognition, measurement, presentation and disclosure of PPE; assets qualifying as PPE must be held for use in production or supply of goods/services and have a useful life of more than one year; PPE is initially measured at cost and subsequently using either the cost or revaluation model; depreciation is charged over the useful life of an asset using methods like straight line or diminishing balance; and gains or losses on disposal of PPE are included in profit or loss.
This document summarizes Accounting Standards 1-15 presented by Dr. Rana Singh. It discusses the key aspects of each standard including disclosure of accounting policies, valuation of inventories, cash flow reporting, contingencies, revenue recognition, depreciation accounting, construction contracts, research and development, and accounting for changes in policies. It also provides examples of how some large Indian companies apply the standards in their financial reporting and accounting policies.
IAS-1: Presentation of Financial StatementsAmit Sarkar
IAS 1 Presentation of Financial Statements sets out the overall requirements for financial statements, including how they should be structured, the minimum requirements for their content and overriding concepts such as going concern, the accrual basis of accounting and the current/non-current distinction. The standard requires a complete set of financial statements to comprise a statement of financial position, a statement of profit or loss and other comprehensive income, a statement of changes in equity and a statement of cash flows.
This document provides an overview of IND AS 41 - Agriculture. It discusses the objective, scope, key definitions, recognition, measurement and disclosure requirements of the standard. The standard relates to accounting for agricultural activity, including biological assets and agricultural produce. It requires biological assets and agricultural produce to be measured at fair value less costs to sell, except when fair value cannot be measured reliably. The document provides examples of biological assets and the resulting agricultural produce, and outlines the recognition criteria and disclosures required by the standard.
This document provides an overview of IAS 16, which establishes the accounting requirements for property, plant and equipment. It defines key terms, outlines the requirements for recognition, measurement, depreciation, impairment, derecognition and disclosure of property, plant and equipment. The standard aims to prescribe the accounting treatment for PPE, including how to determine the carrying amount and calculate depreciation charges and impairment losses. It applies to tangible items used in operations or for administrative purposes that are expected to be used for more than one period.
This document provides guidance on IAS 41, which establishes the accounting and reporting standards for biological assets and agricultural produce. It defines key terms related to agricultural activity and biological transformation. Biological assets must be measured at fair value less costs to sell at initial recognition and each reporting date. Gains and losses from changes in fair value are recognized in profit or loss. Government grants related to biological assets are recognized as income based on certain conditions. Extensive disclosures are required regarding biological assets and measurement methods.
IAS 41 establishes standards for accounting for agricultural activity, which involves the biological transformation of living plants and animals into agricultural produce or harvested products. It requires biological assets and agricultural produce to be measured at fair value less costs to sell, except when fair value cannot be reliably measured. IAS 41 also specifies disclosure requirements regarding gains and losses on biological assets, descriptions and quantities of biological assets and produce, and reconciliations of changes in biological asset values.
Coffea arabica is a species of coffee plant native to subtropical Africa and southern Asia. The coffee plant is a woody perennial that grows into a small tree or bush up to 3-3.5 meters tall. Coffee plants produce red fruits called cherries that contain two seeds called coffee beans. The Coffea arabica species is considered to produce the highest quality coffee beans. Coffee plants require warm temperatures between 19-25°C and substantial water and fertilizer to yield 800-1400 kg of coffee cherries per hectare.
This document provides guidance on auditing liabilities. It discusses that liabilities include loans and creditors. It recommends evaluating internal controls over loans, borrowings, trade creditors, and current liabilities to reduce audit risk. It also outlines verification procedures like examining records, obtaining direct confirmations, analytical reviews, and management representations to audit liabilities.
Prepared by: Ms. JAMAICA OLAZO
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Definition of Taxonomy
Benjamin Samuel Bloom
History of Bloom's Taxonomy
Three Domains
Six Levels of Cognitive Domain
Appropriate Verbs
Products and Model Questions
This document discusses the history of agrarian reform in the Philippines from the Spanish period to present. It covers the various land tenure systems over time, including under Spanish rule where the encomienda system arose and friar lands were established. Under American rule, tenant farming increased and acts were passed to regulate labor organizations and protect tenants. The Japanese occupation saw the rise of resistance groups. Post-war, various agrarian reform laws and programs have been implemented, including the Comprehensive Agrarian Reform Law of 1988. The objectives, components, and beneficiaries of agrarian reform are also summarized.
This document provides an overview of farm record keeping and accounting. It discusses how farm record keeping is important for planning, decision making, obtaining credit, and tax purposes. It describes the key components of a farm record keeping system including income/expense ledgers, inventory records, depreciation schedules, and financial statements. It also discusses different record keeping methods and explains common business documents like invoices, receipts, and balance sheets used for accounting. Maintaining accurate farm records is presented as an essential management tool for farmers.
The document contains information about Camarines Norte State College, including its vision to become a premier higher education institution in the Bicol Region and its mission to provide higher education across various fields. It also includes a field study form that evaluates a student's performance in focusing on content validity of tests and quizzes. The form assesses tasks such as observation, analysis, reflection, portfolio, and submission deadline.
The document provides an overview of accounting standards in India and other countries. It discusses 32 accounting standards issued by the Institute of Chartered Accountants of India that are based on the 41 International Financial Reporting Standards. The standards cover various topics such as disclosure of accounting policies, treatment of inventories, cash flow statements, revenue recognition, accounting for fixed assets, foreign exchange rates, and financial instruments. The objectives, evolution, and key aspects of many individual accounting standards are summarized.
The document discusses key aspects of the 1987 Philippine Constitution and the Comprehensive Agrarian Reform Program (CARP) established under it. CARP aims to redistribute agricultural lands to landless farmers and farmworkers to improve social justice and equity. It covers over 10 million hectares of land to be distributed to over 3 million beneficiaries over 10 years. The Department of Agrarian Reform is the lead agency responsible for land redistribution and providing support services to farmer-beneficiaries.
Accounting Standard 2 deals with the valuation of inventories and the determination of cost. It provides guidelines on measuring inventories at the lower of cost or net realizable value. Cost includes all costs to bring inventories to their present location and condition, such as purchase cost, conversion cost, and other attributable costs. Cost formulas like FIFO, weighted average, or standard cost can be used and must be applied consistently. Certain costs like abnormal amounts or selling costs are excluded from the valuation. Disclosures around accounting policies and total inventory carrying amounts are also required.
Inventory Valuation Methodologies for Agriculture InventoriesNational Pork Board
This document discusses inventory valuation methodologies for agricultural inventories. It outlines that inventories should generally be valued at the lower of cost or market price. Market valuation is allowed in exceptional cases where cost is impractical to determine. Normal inventory costs include items like seeds, fertilizer, feed, labor, and overhead. Abnormal costs like idle facilities and interest are excluded. The document discusses challenges in obtaining market values for agricultural products due to factors like grades, costs to complete, and market volatility. Care must be taken when recording mark-to-market adjustments for growing crops and animals not ready for sale in the current period.
This document provides an overview of accounting standards and corporate accounting practices in India. It discusses key points about various accounting standards issued by the Accounting Standards Board of India, including standards on revenue recognition (AS-9), valuation of inventories (AS-2), depreciation (AS-6), foreign exchange rates (AS-11), investments (AS-13), borrowing costs (AS-16), segment reporting (AS-17), related party disclosures (AS-18), and earnings per share (AS-20). It also outlines responsibilities of chartered accountants to disclose any non-compliance with accounting standards. The standards are applicable to business and commercial organizations from the specified effective dates.
This presentation summarizes the major differences between Nepal Financial Reporting Standards and Nepal Rastra Bank (NRB) directives. The presentation was made on October 2015 to the CEO and Audit Committee members of commercial banks of Nepal in a joint program organized by central bank of Nepal and Institute of Chartered Accountants of Nepal.
This document provides information on applicable Indian accounting standards for different levels of enterprises and lists the various Indian Accounting Standards (AS) and International Accounting Standards (IAS). It discusses in detail AS 1 on disclosure of accounting policies, AS 2 on valuation of inventories, AS 5 on net profit/loss, prior period items and changes in accounting policies, AS 6 on depreciation, AS 9 on revenue recognition, and AS 26 on intangible assets. The key highlights include definitions, recognition and measurement principles, and disclosure requirements for these standards.
The document discusses Indian accounting standards, including the meaning and benefits of accounting standards. It provides details on several specific accounting standards such as AS1 on disclosure of accounting policies, AS6 on depreciation accounting, AS9 on revenue recognition, and AS10 on accounting for fixed assets. The standards cover topics such as selection and disclosure of accounting policies, methods of depreciation, timing of revenue recognition, calculation of costs of fixed assets, and revaluation of fixed assets. The overall objective of the accounting standards is to standardize different accounting policies and practices in India.
The Basic Understanding of the Section 199 Deductiongppcpa
The presentation clarifies the fundamentals of the section 199 deduction starting with the background to the formula of calculating the deduction. The section 199 deduction is known as the domestic production activities deduction which is a tax incentive designed to stimulate domestic US manufacturing.
The document discusses PAS 41 Agriculture, including the scope and definitions of biological assets, agricultural produce, and government grants. It explains the requirements for recognition, measurement, and disclosure of these items. Special considerations for auditing in the agriculture industry are also covered, such as competence, planning, and reliance on experts.
PFRF for Coops webinar 2020 CDA Regional Office Ijo bitonio
e-Forum of CDA and PICPA Pangasinan Chapter
Aug 19, 2020
on CDA Issuances, Statutory Reserves, MC 2020-18, Journal Entries and Philippine Financial Reporting System
PPE refers to tangible items held for use in production or supply of goods and services with an expected useful life of more than one year. The standard outlines the accounting treatment for PPE, including initial recognition at cost, subsequent measurement using either the cost or revaluation model, depreciation, and derecognition. It also provides disclosure requirements such as the measurement basis, depreciation methods used, carrying amounts, and details related to revalued assets.
Accounting standards notes Dr. V M TidakeVishal Tidake
The document discusses Indian Accounting Standards (AS) as issued by the Institute of Chartered Accountants of India (ICAI). It provides definitions and explanations of key terms like accounting standards, accounting policies, revenue recognition, accounting for fixed assets, and depreciation accounting. Some of the main points covered include that accounting standards aim to standardize accounting policies and practices, the Accounting Standards Board of ICAI prepares the standards, and there are currently 32 accounting standards in India. The document also provides details on the objectives, disclosure requirements, and treatment of certain items under some major accounting standards like AS 1 on accounting policies, AS 6 on depreciation, AS 9 on revenue recognition, and AS 10 on fixed assets.
2015 Business of Farming Conference: Risk Management Options: Crop Insurance ...asapconnections
Risk Management Options: Crop Insurance and Accessing Credit
The 2014 Farm Bill brought a variety of changes and opportunities for both small and mid-sized farmers. This workshop is designed to offer an overview of what it means to manage risk for your farm and options for both beginning and experienced farmers. Area experts will help you navigate crop insurance choices and opportunities for accessing credit, offering the information and tools you need to determine the best options for your farm.
The document discusses key concepts related to accounting for property, plant and equipment (PPE) as per Indian Accounting Standard (IndAS) 16. It covers initial recognition of PPE at cost, components of cost, subsequent measurement using cost or revaluation model, depreciation methods, impairment and derecognition. It also includes examples on capitalization of borrowing costs, treatment of restoration costs, and practice questions related to accounting for PPE.
This document provides guidance on accounting for property, plant, and equipment according to IPSAS 17. It defines PP&E as tangible items held for use in production or supply of goods/services or for administrative purposes that are expected to be used for more than one period. PP&E is initially measured at cost and subsequently measured using either the cost or revaluation model, less any accumulated depreciation. Depreciation is systematically allocated over the useful life of each asset, and PP&E is derecognized upon disposal or when no future benefits are expected.
Income diversification adk A presentation by Mr.Allah Dad Khan Mr.Allah Dad Khan
This document outlines procedures for providing income diversification interventions (IDIs) to small farmers in Pakistan. It discusses:
1. The objectives of IDIs which include creating self-employment opportunities, skills training, and ensuring food security and reducing poverty.
2. Examples of suggested small enterprises for IDIs such as dairy farming, poultry, fisheries, beekeeping and more.
3. The process for selecting beneficiaries which involves applications, eligibility criteria review by technical committees, and prioritizing the most suitable applicants.
4. Financial management details such as cost sharing between projects and farmers, loan terms, and monitoring purchasing processes.
This document provides an overview of accounting standards for non-current assets, including IAS 16 on property, plant, and equipment. IAS 16 establishes guidelines for recognition, measurement, presentation, and disclosure of property and equipment. It requires assets to be carried at cost or fair value, and depreciated over their useful lives unless impaired. The standard also provides guidance on revaluations, component accounting, and disposal of assets. Overall, IAS 16 aims to prescribe the appropriate accounting treatment for property and equipment to ensure accurate reporting of non-current assets in financial statements.
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This document provides an overview of PAS 16 Property, Plant and Equipment. It discusses the recognition, measurement, and subsequent accounting for PPE. Key points include: PPE must be tangible, for long-term use, and used in operations. It is initially measured at cost and subsequently using either the cost or revaluation model. Depreciation is systematically allocated over the useful life, and the straight-line method is commonly used. PPE is derecognized upon disposal or when no future benefits are expected.
The document summarizes key aspects of understanding financial statements for an audit. It discusses reviewing the director's report for key information, case studies on observations that may indicate tax issues, notes to financial statements that require examination, types of ratios to analyze, periods of review, balance sheet and trial balance items to focus on, and special items requiring attention in a service tax audit such as reverse charge mechanisms.
1. Agriculture Accounting
• Pecularities in Accounting of Agricultural activity
• Existing Accounting Guidelines – Indian GAAP
• EAC Opinions
• International Guidelines – IFRS
• Issues
• Expectations
2. Agriculture Accounting
• Query – Treatment of Expenditure on Timber plantation
- whether capital or revenue
Opinion – Disclose as Work-in-progress under Current
Assets since it is similar to production process till it
attains maturity during 10-12 years. To be valued at
lower of cost or NRV. NRV determined based on
estimated selling price less estimated cost to be incurred
in future for bringing the plantation to maturity and selling
cost. Cost to include all expenses for raising timber till
valuation date. (1998)
3. Agriculture Accounting• Query – Period upto which expenditure on plantation of coconut and cashewnut be capitalised
Opinion – No fixed period can be laid down. Will depend on plantation to plantation basis.
However, commercial production can be said to have begun in the year in which the quantity of
produce is commercially exploited i.e sale or manufacture etc. ( 1993)
• Query – Orchid plants
1. Accounting treatment of cost of Orchid Plant ?
2. Accounting treatment of cost of infrastructure facility ?
3. Cut-off stage for capitalisation of expenditure ?
4. Accounting treatment of cost of fertilisers / insectides ?
5. Accounting treatment of cost of personnel ?
6. Accounting treatment of income from sale of flowers upto date of commercial exploitation ?
7. Accounting treatment of matured unplucked flowers ?
8. Depreciation of Orchid Plant
Opinion – (Vol XXI)
1. Treated as Fixed Asset – Identifiable batch
2. AS 10 to apply – Capitalise under respective head till they are ready for intended use
3. When ‘produce’ is commercially exploitable. In said case when plants reach age of 12 months
though exportable quality is produced at age of 3 years
4. Capitalise to ‘Cost of Orchid plant’ till stage of commercial exploitation reached, thereafter
revenue
5. Costs of Personnel engaged in development of project be capitalised
6. Reduce from the indirect expenditure relating to development of Orchid plant
7. Value at NRV – only if sale is assured otherwise at ‘Nil’ value
8. No rate specified in Schedule XIV of Cos Act. To depreciate over estimated useful life from date
when ready for commercial exploitation till the date their produce becomes economically
unviable.
4. Agriculture Accounting
• Query – Treatment of Expenditure incurred jointly for
developing captive plantation
Opinion – Disclose as advance to Rajya Van Vikas
Nigam (Forest for joint plantation pending allocation
under “Loans and Advances” with explanatory note –
Ownership of assets not yet known
• Query – Whether Plantation includes ‘Made Tea’ and
consequent applicability of AS 2 with regard to treatment
of future costs for sending stock till destination included
in value of stock at balance sheet date
Opinion – Plantation includes only ‘plucked green (raw)
tea. ‘Made tea’ involves Manufacturing process hence
AS 2 applies to ‘Made Tea’. Treatment followed by
company is not correct
5. Agriculture Accounting
• Query - Applicability of MAOCARO to Company
engaged in Cultivation of Sugarcane and Paddy
Opinion - Cultivation activity does not amount to
Manufacturing, Processing, Trading and Mining, chit
fund, etc
• Query - Capacity utilisation and Normal production for
the purpose of absorption of overheads - whether rate of
crushing (MT/day) or Sugar Production
Opinion – Based on Input i.e cane crushed / day,
seasonal wages are direct cost and non-seasonal wages
are production overheads thus based on normal level of
production – AS 2
6. Agriculture Accounting
• Query – Treatment of Land Development Expenditure on
Agricultural Farms
Opinion – On Land granted by Government to Company
(will revert only upon liquidation) disclose such Land in
books (principle of substance over form). Revalue the
same and consequently the cost of land development is
added to cost of land provided such cost is not
connected with the construction of any other Project.
On Leasehold land – such cost to be added to cost of
leasehold land and then to be depreciated over life of
lease
Other Land Development expenditure – To be written off
or if material then to be treated as deferred revenue
expenditure
7. Agriculture Accounting - IAS 41
In relation to Agricultural activity
Scope includes
• Biological Assets
• Agricultural produce at point of harvest
• Conditional and Unconditional Government grants
Scope excludes
• Land
• Intangible assets
• Agriculture produce after harvest for eg processing of grapes into
wine by vintner
Pecularities
• Capability to change – Biological transformation through growth,
degeneration, procreation or production of agricultural produce
• Management of change – Facilitating Biological transformation eg
nutrient levels, moisture, etc
• Measurement of change – change in quality and quantity
9. Recognition and Measurement
Recognise Biological asset and Agriculture produce when
• Entity controls the asset
• Future economic benefit will flow
• Fair value or cost of asset can be measured reliably
Measurement of BA / AP
• Fair value less estimated costs to sell
• Cost to sell will include commission to brokers and dealers, levies,
transfer taxes
• Cost to sell exclude transport and other costs necessary to get the
asset to market
• Fair value is determined with reference to present location and
condition.
• Fair value will become cost after harvest if IAS 2 – Inventories is
applied to such produce
• FV is presumed to be measured reliably except Para 30
• Whether AP under WIP to be recognised and measured or not ????
10. Measurement guidance
• FV can be determined for group of similar BA / AP
• FV is not influenced by future contract prices
• FV influenced by prices prevalent in active market where BA/AP expected to be sold
• If no active market, then either most recent transaction price or market prices for similar assets or
sector benchmarks depending upon availability and reasonability
• If no market determined prices available for BA then PV of net cash flows discounted at current
market determined pretax rate
• The expected net cash flows are to be computed considering the present location and condition for
which an appropriate discount rate need to be considered i.e. no cognisance be taken of future
biological transformation or future activity, or harvesting or selling
• FV to take into consideration variations in cash flows
• Cost may approximate FV sometimes for eg little biological transformation at balance sheet date or
impact of biological transformation is not material
• FV of Combined assets can be considered to arrive at FV of BA alongwith raw land or land
improvements if market exists for combined assets
• FV of AP – presumed that it can be reliably measured at point of harvest
Exceptions to FV – Para 30
• Initial recognition of B/A when market prices unavailable
• Alternative estimates are unreliable
• Measured at Cost less depreciation / impairment loss
When to revert back to FV
• When FV can be reliably measured
• When non-current B/A are held for sale as per IFRS 5 where it is presumed that FV can be
measured reliably.
Gain or Loss upon FV accounting
• Recognise the same in profit or loss in the period in which arises
11. Measurement guidance
Government Grants
• Unconditional – Recognised as income
when receivable.
• Conditional – Recognised as income when
conditions met.
• IAS 41 not apply where BA is measured at
cost. IAS 20 instead will apply
12. Disclosure
• Each group of BA
• Group are subdivided into
Consumable and Bearer BA
Mature and Immature BA
• Nature of activities
• Physical quantities – BA and Output of AP
• Methods of determining FV
• Significant assumptions in determining FV
• FV of harvested produce during the period
13. Issues on Agriculture Accounting
• No Accounting Standard in India
• Non-uniformity in accounting practices either treated as Fixed Assets, Inventories, Property
Development or Loans and Advances. For eg Timber plantation as WIP or Fixed Asset, Orchid
plant as Fixed asset
• Classification of Agricultural assets
• Treatment of operational costs on plantation
• Unresolved issues in IAS – 41
• Business models in India involve commercial farming by private enterprises
FV challenge
1. BA including biological transformation upto point of harvest are to be recognised at FV. FV determination is
very subjective at periodic intervals. Where market determined prices are not available then net present
value of expected cash flows discounted at current market-determined pre-tax rate are recommended. For
eg colt grows into stallion who wins races. Stallion get older his utility decreases. Stallion dies of old age
and carcass used as pet food. Also in case of Vineyards, Tea or Coffee plantation determining FV involves
high level of complex and subjective tasks. Further, deducting value of unimproved land and infrastructure
from total value is subjective and open to substantial variability.
2. Notional gain / loss to be recognised in profit and loss statement. This applies even when first harvest may
come after 30 years which is not consistent with historical cost convention
3. Declaring dividends out of such unrealised gain / loss may give misleading picture of FS. Since these
assets are subject to natural disasters, diseases etc
4. Some BA are treated as Fixed assets. Gain / Loss arising out of changes in FV of FA are generally not
recognised to P/L statement. Then why such treatment applies to agricultural non-financial assets
5. Comparing biological transformation with regard to their quality in group is difficult process. Estimating
price for produce of such quality could pose a challenge
6. No convinving argument put forward by IASB in favour of FV model for non-financial assets
7. Not consistent with IAS 38 – Intangible assets where in case of revaluation imposes strict criteria eg, active
market, homogenous product, willing buyers and seller, prices available to public.