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?

Question

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?

Quizplus · Accepted Answer

The change in fair value less estimated point-of-sale costs of the vines for the reporting period 30 June 2012 is $350,000. This is calculated as follows:Fair value of the vineyard before harvest of grapes on 29 June 2012 $7,800,000Less: Fair value of harvested grapes on 29 June 2012 (600,000)Less: Estimated point-of-sale costs of grapes (20,000)Fair value less estimated point-of-sale costs of the vines on 29 June 2012 $7,180,000Less: Carrying amount of the vineyard 30 June 2011 (7,500,000)Change in fair value less estimated point-of-sale costs of the vines for the reporting period 30 June 2012 ($320,000)

Margaret Ltd Has a Vineyard and at the End of Reporting