alleryStart learning →A farmer harvests a crop. Where does any gain on initial recognition of the produce go?
AProfit or loss
BRevaluation surplus
CShare capital
DDeferred income
Answer & Solution
Correct answer: A. Profit or loss
A gain or loss on initial recognition of produce at fair value less costs to sell goes to profit or loss.
Keep practising Ind AS 20 Government Grants and Ind AS 41 Agriculture
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