When Determining the Fair Value of Biological Assets When There

question 5

Multiple Choice

When determining the fair value of biological assets when there is no market price for that asset in its present condition AASB 141/IAS 41 requires that:

• A) the entity uses sector benchmarks.
• B) the entity measures the asset at cost.
• C) the entity uses the contract prices for recent sales of similar assets adjusted for the effects of biological transformation.
• D) the entity uses the present value of expected net cash flows from the asset discounted at a current market-determined rate.

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Definitions:

Tension

A state of mental or emotional stress, often arising from situations of conflict or anxiety.

Characteristics of Traits

Inherent features, qualities, or attributes that define and differentiate individuals or entities.

Facial Expressions

The movements of the facial muscles that convey emotions, intentions, or social information to others.

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