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Nona Dairy Farm Bhd. was established on 1 January 2013 in Johor. and its year-end is 31 December every year. The company's business includes breeding and maturing cattle and producing milk On 1 January 2013, the company purchased 200 immature calves a 300 mature cattle. Information about the fair value for both mature and immature cattle and costs to sell are provided as follows: main nd 2013 (RM) 2014 (RM) 1,100 1,200 Fair value per unit (immature) Fair value per unit (mature) Cost to sell (per unit): 55 500 60 600 Auctioneer's fee (596) - Transportation cost per truck (the normal capacity per truck is approximately 100 cattle) On 15 February 2014, the company received a grant of 000 from the government as an incentive to venture into agricultural activities. The grant had the following condition attached to it 'Nona Dairy Farm Bhd. must continue to operate its agricultural activities in Johor until at least 31 December 2020. If Nona Dairy Farm Bhd. discontinues all or part of its operations in Johor before that date, then the company shall immediately repay the grant in full' On 1 July 2014, the company purchased 150 immature calves for RM180,000. As at 31 December 2014, the company had 400 immature calves (including the 50 newborn calves in 2014) and 300 mature cattle. The company also held a stock of 50,000 kilograms of milk in powder form at the end of the reporting period. Required Advise the director on how the biological assets and produce of ona Dairy Farm Bhd. should be accounted for under MFRS 141- Agriculture

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