When Determining the Fair Value of Biological Assets and There

question 9

Multiple Choice

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

• A) the entity uses the present value of expected net cash flows from the asset discounted at a current market-determined pre-tax rate.
• B) the entity measure 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 sector benchmarks.

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Definitions:

Money Economy

A system where goods and services are exchanged primarily through the medium of money, rather than through barter.

Intrinsic Power

The capability or influence derived from an individual's inherent qualities or position, not dependent on external factors.

Military Power

The capacity of a nation's armed forces to use force or the threat of force to control situations and achieve specific objectives, often influencing international relations.

Technology

The application of scientific knowledge for practical purposes, especially in industry.