(IFRS) for Small and Medium-sized Entities (SMEs)

IFRS FOR SMES – JULY 2009(b)If an active market does not exist, an entity uses one or more of thefollowing, when available, in determining fair value:(i)(ii)(iii)the most recent market transaction price, provided that there has notbeen a significant change in economic circumstances between thedate of that transaction and the end of the reporting period;market prices for similar assets with adjustment to reflectdifferences; andsector benchmarks such as the value of an orchard expressed perexport tray, bushel, or hectare, and the value of cattle expressed perkilogram of meat.(c)(d)In some cases, the information sources listed in (a) or (b) may suggestdifferent conclusions as to the fair value of a biological asset or agriculturalproduce. An entity considers the reasons for those differences, to arrive atthe most reliable estimate of fair value within a relatively narrow range ofreasonable estimates.In some circumstances, fair value may be readily determinable withoutundue cost or effort even though market determined prices or values arenot available for a biological asset in its present condition. An entity shallconsider whether the present value of expected net cash flows from theasset discounted at a current market determined rate results in a reliablemeasure of fair value.Disclosures – fair value model34.7 An entity shall disclose the following with respect to its biological assetsmeasured at fair value:(a)(b)(c)a description of each class of its biological assets.the methods and significant assumptions applied in determining the fairvalue of each category of agricultural produce at the point of harvest andeach category of biological assets.a reconciliation of changes in the carrying amount of biological assetsbetween the beginning and the end of the current period. The reconciliationshall include:(i)(ii)(iii)(iv)(v)(vi)the gain or loss arising from changes in fair value less costs to sell.increases resulting from purchases.decreases resulting from harvest.increases resulting from business combinations.net exchange differences arising on the translation of financialstatements into a different presentation currency, and on thetranslation of a foreign operation into the presentation currency ofthe reporting entity.other changes.© IASCF 201