Page 2 - 8. COMPILER QB - INDAS 41

INDAS – 41

AGRICULTURE

(TOTAL NO. OF QUESTIONS – 9)

INDEX

S.No. Particulars Page No.

1 RTP Questions 8.1

2 MTP Questions 8.4
3 Past Exam Questions 8.5

4 Newly Added Questions by ICAI 8.9

RTPs QUESTIONS

Q1 (RTP Nov.18 & MTP Oct.19)
As at 31st March, 2017, a plantation consists of 100 Pinus Radiata trees that were planted 10 years earlier.

The tree takes 30 years to mature, and will ultimately be processed into building material for house or
furniture. The enterprise’s weighted average cost of capital is 6% p.a.

Only mature trees have established fair values by reference to a quoted price in an active market. The fair
value (inclusive of current transport costs to get 100 logs to market) for a mature tree of the same grade as

in the plantation is:
As at 31st March, 2017: 171

As at 31st March, 2018: 165
Assume that there would be immaterial cash flow between now and point of harvest. The present value factor

of Rs 1 @ 6% for:
th
19 year = 0.331
th
20 year = 0.312
State the value of such plantation as on31st March, 2017 and 2018 and the gain or loss to be recognised as

per Ind AS.

8.1