CERTYNEX IFRS ACADEMY

The Clos-Varenne estate farms its vines, harvests the grapes and turns them into wine, which it sells. Consider three items: the vines, the grapes at the point of harvest and the wine maturing in vats. Which allocation is correct?

All three items fall under IAS 2, since they all contribute to future sales.

The vines and the grapes at the point of harvest are excluded from the scope of IAS 2; the maturing wine is work in progress within IAS 2.

The vines are excluded from the scope of IAS 2; the grapes at the point of harvest and the maturing wine fall under IAS 2 as inventories.

None of these items falls under IAS 2, since the estate's main activity is agricultural.