Agricultural accounting

2. agricultural
activity
The management by an entity of the biological
transformation of biological assets for sale, into agricultural
produce or into additional biological assets.
agricultural
produce
The harvested product of the entity’s biological assets.
biological asset A living animal or plant.

9. Agricultural activity Oil palm plantation
Agricultural produce Fruits
Biological asset Tree

10. Bank
Biological
assets
Stock Sales
Biological
gain
Harvesting
gain
Cost of sales Expenses Total
Year 1 Plantation costs (500.00) - - - - - 500.00 500.00
One year old tree - 700.00 - - (700.00) - - - (700.00)
-
Year 2 Plantation costs (300.00) - - - - - - 500.00 500.00
Two year old tree - 700.00 - - (700.00) - - - (700.00)
-
Year 3 Sales 600.00 - - (600.00) - - - - (600.00)
Plantation costs (100.00) - - - - - - 100.00 100.00
Harvesting costs (200.00) - - - - - - 200.00 200.00
Agriculture produce - - 100.00 - - (500.00) 400.00 - (100.00)
Three year old tree - 700.00 - - (700.00) - - - (700.00)
Total (500.00) 2,100.00 100.00 (600.00) (2,100.00) (500.00) 400.00 1,300.00 (1,500.00)
SoFP SoCI

11. Statement of financial position
Y1 Y2 Y3
Non - current assets
Biological assets at fair value 700.00 1,400.00 2,100.00
Current assets
Inventories - - 100.00
Statement of comprehensive income
Revenue - - 600.00
Opening stock - - -
Cost of sales (500.00) (500.00) (600.00)
Closing stock - - 100.00
Gross (Loss) / Profit (500.00) (500.00) 100.00
Changes in fair value 700.00 700.00 700.00
Harvesting gain - - 500.00
Expenses (200.00)
Net profit 200.00 200.00 1,100.00

12. Bank
Biological
assets
Inventories Sales
Biological
gain
Harvesting
gain
Cost of sales Expenses Total
Year 1 Plantation costs (500.00) 500.00 - - - - - - -
Year 2 Plantation costs (500.00) 500.00 - - - - - - -
Year 3 Sales 600.00 - - (600.00) - - - - (600.00)
Plantation costs (100.00) 100.00 - - - - - - -
Harvesting costs (200.00) - - - - - - 200.00 200.00
Agriculture produce - - 100.00 - - (500.00) 400.00 - (100.00)
Depn Yr 3 (44.00) - - - - 44.00 44.00
Total (700.00) 1,056.00 100.00 (600.00) (500.00) 400.00 244.00 (456.00)
** assuming the useful life for tree is 25 years
Depreciation is calculated as (500+500+100)/25 = 44
SoFP SoCI

13. Statement of financial position
Y1 Y2 Y3
Non - current assets
Biological assets at cost 500.00 500.00 1,056.00
Current assets
Inventories - - 100.00
Statement of comprehensive income
Revenue - - 600.00
Opening stock - - -
Cost of sales - - (500.00)
Closing stock - - 100.00
Gross (Loss) / Profit - - 200.00
Harvesting gain - - 500.00
Expenses (244.00)
Net profit - - 456.00

14. Agricultural activity Furniture company
Agricultural produce Timber
Biological asset Tree

15. Bank
Biological
assets
Sales
Changes in
Fair value
Cost of sales Expenses Total
Year 1 Plantation costs (500.00) - - 500.00 - 500.00
One year old tree - 700.00 (700.00) - - (700.00)
-
Year 2 Plantation costs (500.00) - - - 500.00 - 500.00
Two year old tree - 700.00 (700.00) - - (700.00)
-
Year 3 Sales 3,000.00 - (3,000.00) - - - (3,000.00)
Cost of sales - (2,100.00) - - 2,100.00 - 2,100.00
Plantation costs (100.00) - - - 100.00 - 100.00
Harvesting costs (200.00) - - - - 200.00 200.00
Three year old tree - 700.00 (700.00) - - (700.00)
Total 1,700.00 - (3,000.00) (2,100.00) 3,200.00 200.00 (1,700.00)
SoFP SoCI

16. Statement of financial position
Y1 Y2 Y3
Non - current assets
Biological assets at cost 700.00 1,400.00 -
Statement of comprehensive income
Revenue - - 3,000.00
Cost of sales (500.00) (500.00) (2,200.00)
Gross (Loss) / Profit (500.00) (500.00) 800.00
Changes in fair value 700.00 700.00 700.00
Expenses (200.00)
Net profit 200.00 200.00 1,300.00

17. Bank
Biological
assets
Sales Cost of sales Expenses Total
Year 1 Plantation costs (500.00) 500.00 - - - -
Year 2 Plantation costs (500.00) 500.00 - - - -
Year 3 Plantation costs (100.00) 100.00 - - . -
Sales 3,000.00 - (3,000.00) - - (3,000.00)
Cost of sales - (1,100.00) - 1,100.00 - 1,100.00
Harvesting cost (200.00) - - - 200.00 200.00
- - - -
Total 1,700.00 - (3,000.00) 1,100.00 200.00 (1,700.00)
SoFP SoCI

18. Statement of financial position
Y1 Y2 Y3
Non - current assets
Biological assets at cost 500.00 1,000.00 -
Statement of comprehensive income
Revenue - - 3,000.00
Cost of sales - - (1,100.00)
Gross (Loss) / Profit - - 1,900.00
Expenses (200.00)
Net profit - - 1,700.00