07-27-2010, 12:27 AM
based on general understanding i can say this...others may correct me..
for 1st question regarding measurment...if ur reporting date comes whent there is no market value for the produce..then as per standard you have to keep it at cost.....and as soon as market value is determinable u will reclassify the asset to the fairvalue model with gain taken to p&l..
alternatively if reporting date comes when the produce has some fair value then u just measure it at the reporting date...
as for the grant..
if u are sure that you are not going to engage in the prohibited agriculutural activity..you should recognise it as income since you have received the grant already..
if you decide to engage in the prohibited activity..and the grant becomes repayable then you will recognise a provision when the grant becomes repayable..
for 1st question regarding measurment...if ur reporting date comes whent there is no market value for the produce..then as per standard you have to keep it at cost.....and as soon as market value is determinable u will reclassify the asset to the fairvalue model with gain taken to p&l..
alternatively if reporting date comes when the produce has some fair value then u just measure it at the reporting date...
as for the grant..
if u are sure that you are not going to engage in the prohibited agriculutural activity..you should recognise it as income since you have received the grant already..
if you decide to engage in the prohibited activity..and the grant becomes repayable then you will recognise a provision when the grant becomes repayable..
