Margaret Ltd has a vineyard and at the end of reporting period 30 June 2012 the following information is available. 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.  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 is calculated as follows:
Fair value at the beginning of the period = $5,000,000
Fair value at the end of the period = $4,500,000
Estimated point-of-sale costs = $200,000
Change in fair value less estimated point-of-sale costs = $5,000,000 - $4,500,000 - $200,000 = ($350,000)

Margaret Ltd Has a Vineyard and at the End of Reporting