CERTYNEX IFRS ACADEMY

Agricole des Trois Chênes harvests wheat from its own crops on 20 July 20X1 and stores it in a silo pending its sale. At the point of harvest, the fair value of the wheat less costs to sell amounts to 80,000. At 31 December 20X1, that same amount would be 95,000 because market prices have risen. The entity applies the measurement requirements of IAS 2 to this inventory (case data). Which amount is the cost of the wheat under IAS 2?

95,000, because cost follows fair value less costs to sell until the wheat is sold.

80,000, the amount determined at the point of harvest.

The accumulated cultivation costs incurred since sowing, whatever their amount.

No cost: the harvested wheat stays outside IAS 2 and continues to be measured under IAS 41 until sold.