Margaret Ltd Has a Vineyard and at the End of Reporting

question 25

Multiple Choice

Margaret Ltd has a vineyard and at the end of reporting period 30 June 2012 the following information is available: $$\begin{array} { | l | r | } \hline \text { Carrying amount of the vineyard } 30 \text { June } 2011 & 7500000 \\\hline \text { Fair value of harvested grapes on } 29 \text { June } 2012 & 600000 \\\hline \text { Estimated point-of-sale costs of grapes } & 20000 \\\hline \text { Estimated point-of-sale costs of vines as at 30 June 2012 } & 50000 \\\hline \text { Fair value of the vineyard before harvest of grapes on 29 June 2012 } & 7800000 \\\hline\end{array}$$ What is the change in fair value less estimated point-of-sale costs of the vines for the reporting period 30 June 2012 in accordance with AASB 141 Agriculture?

• A) ($350 000)
• B) ($300 000)
• C) $250 000
• D) $350 000

---

Definitions:

Mutually Exclusive

Situations or events that cannot both occur at the same time, indicating a clear choice between two options.

Required Rate

The minimum return an investor expects to achieve on an investment to compensate for its risk.

Net Present Value

A financial metric that calculates the value of projected future cash flows, discounted back to their present value.

Funds

Financial resources that are saved or obtained for a specific purpose or project, often pooled together from multiple sources.