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Section 3700: Biological Assets

International Accounting Standard 41
Agriculture

1. First version of IAS 41
"Agriculture" issued in February 2001

[U.S. GAAP Codification Topic]
905 Agriculture

2. Biological Asset
--> living animal or plant

3. Harvest
(1) detaching produce from biological asset
(2) ceasing life process of biological asset

4. Agricultural Produce
--> harvested product of biological asset

5. Measurement of Biological Assets
Biological Assets are measured
--> at fair value less costs to sell,
--> at the time of initial recognition and
--> at the end of each reporting period

6. Fair value less costs to sell = (1) - (2)
(1) fair value
(2) costs to sell

7. Costs to sell are
--> incremental costs to dispose of an asset
Costs to sell should be directly attributable to disposal
Costs to sell do not include finance costs and income taxes, IAS 41.12

8. Gain or Loss, IAS 41.26
Change in fair value less costs to sell
(1) is recognised in profit or loss, at the initial recognition
(2) is recognised in profit or loss, after initial recognition

9. Government Grants to Biological Asset
Unconditional government grant
--> is recognised in profit or loss
--> when grant becomes receivable

10. Conditional government grant
--> is recognised in profit or loss
--> when all conditions are met