IFRS PRACTICAL IMPLEMENTATION GUIDE AND WORKBOOK

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Wiley IFRS: Practical Implementation Guide and Workbook

8. DISCLOSURES

• An entity shall discl ose the aggregate gain or loss that arises on the initial recognition of bio–

logical assets and agricultural produce and from the change in value less estimated point-of–

sale costs of the biological assets.

• A description of each group of biological assets is also required. If it is not disclosed any –

where else in the financial statements, then the entity shall also set out the nature of its ac–

tivities and nonfinancial measures or estimates of the physical quantity of each group of the

entity's biological assets at period end. It should supply the same information for the output

for agricultural produce during the period.

• The methods and assumptions applied in determining fair value should also be disclosed.

• The fair value less estimated point-of-sale costs of agricultural produce harvested during the

period shall be disclosed at the point of harvest.

• The existence and carrying amounts of biological assets whose title is restricted and any bio–

logical assets placed as security should be disclosed.

• The amount of any commitments for the development or acqui sition of biological assets and

management's financial risk strategies should also be disclosed.

• A reconciliation of the changes in the carrying amount of biological assets showing sepa–

rately changes in value, purchases, sales, harvesting, business combinations, and exchange

differences should be disclosed.

• Where fair value cannot be measured, then additional disclosure is required including the de–

scription of the asset, an explanation of the circumstances, if possible a range within which

the fair value is likely to fall, any gain or loss recognized on disposal, the depreciation

method, and useful lives or depreciation rates.

• The gros s carrying amounts on the accumulated depreciation should also be shown.

• If the fair value of biological assets previously measured at cost les s accumulated deprecia–

tion and impairment losse s is now ascertainable, then additional disclo sure s are required,

such as a description of the biological assets, an explanation as to why fair value is now reli–

ably measurable , and the effect of the change.

• Regarding government grants, disclosures should be made as to the nature and extent of the

grants , any conditions that have not been fulfilled , and any significant decreases in the

expected level of the grant s.

9. EXCERPTS FROM PUBLISHED FINANCIAL STATEMENTS

RAINBOW CHICKEN, Annual Report 2007

Notes to Group Financial Statements

Accounting Policies

Biological Assets

Breeding stock includes the Cobb grandparent breeding and the parent rearing and laying opera–

tions. Broiler hatching eggs are included in breeder stock.

Biological assets are measured at their fair value less estimated point-of-sale costs at reporting dates.

Fair value is determined based on market prices or, where market prices are not available, by reference

to sector benchmarks.

Gains and losses arising on the initial recognition of biological assets at fair value less estimated

point-of-sale costs and from a change in fair value less estimated point-of-sale costs are charged to the

income statement in the year in which they arise.

4. Biological Assets

Breeding stock

Atthebeginning of the year

Gain arising fromcost inputs

Decrease due to harvest

Fair value adjustment

At the end of the year at fair value

2007

2006

R'OOO

143,314

148,606

418,223

376,029

(403,852)

(382,759)

2,137

1,438

159,822

143,314