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Par 27 ppsas 27 k cost may sometimes approximate fair

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(Par. 27, PPSAS 27)k.Cost may sometimes approximate fair value, particularly when:1.Little biological transformation has taken place since initial cost incurrence (forexample, for fruit tree seedlings planted immediately prior to reporting date); or2.The impact of the biological transformation on price is not expected to bematerial (for example, for the initial growth in a 30-year pine plantationproduction cycle). (Par. 28, PPSAS 27)l.Biological assets are often physically attached to land (for example, trees in aplantation forest). There may be no separate market for biological assets that areattached to the land but an active market may exist for the combined assets, that is,for the biological assets, raw land, and land improvements, as a package. An entitymay use information regarding the combined assets to determine fair value for thebiological assets. For example, the fair value of raw land and land improvements maybe deducted from the fair value of the combined assets to arrive at the fair value ofbiological assets. (Par. 29, PPSAS 27)m.An entity that has previously measured a biological asset at its fair value less costs tosell continues to measure the biological asset at its fair value less costs to sell untildisposal. (Par. 35, PPSAS 27)Sec. 9.Gain or Loss.A gain or loss arising on initial recognition of a biological asset atfair value less costs to sell and from a change in fair value less costs to sell of a biological assetshall be included in surplus or deficit for the period in which it arises.Likewise, a gain or lossarising on initial recognition of agricultural produce at fair value less costs to sell shall beincluded in surplus or deficit for the period in which it arises. (Pars. 30 & 32, PPSAS 27)Sec. 10.Disclosure. The financial statements shall have the following disclosures onbiological assets and agricultural produce:a.An entity shall disclose the aggregate gain or loss arising during the current period oninitial recognition of biological assets and agricultural produce and from the changein fair value less costs to sell of biological assets. (Par. 38, PPSAS 27)b.An entity shall provide a description of each group of biological assets, distinguishingbetween consumable and bearer biological assets and between biological assets heldfor sale and those held for distribution at no charge or for a nominal charge.c.An entity shall distinguish between mature and immature biological assets, asappropriate. These distinctions provide information that may be helpful in assessingthe timing of future cash flows and service potential. An entity discloses the basis formaking any such distinctions. (Par. 42, PPSAS 27)d.If not disclosed elsewhere in information published with the financial statements, anentity shall describe:1.The nature of its activities involving each group of biological assets; and2.Non-financial measures or estimates of the physical quantities of:

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