AASB 102 on Inventories Does Not Apply To

question 34

Multiple Choice

AASB 102 on inventories does not apply to:

• A) trees held for sale as part of forestry operations.
• B) work-in-progress under construction contracts.
• C) agricultural produce of a biological asset.
• D) any of the given answers.

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Definitions:

Gift Tax

A tax on the transfer of assets or money from one person to another without receiving something of equal value in return, in excess of annual and lifetime exemptions.

Section 1231

A tax provision that allows for the preferential tax treatment of gains and losses on the sale or exchange of business property and assets held for more than one year.

Depreciation

An accounting method used to allocate the cost of a tangible or physical asset over its useful life, reflecting wear and tear, deterioration, or obsolescence.

FMV

The Fair Market Value represents the price at which property would be sold in an open market scenario.