IAS-41 – Agriculture

This standard prescribes the accounting treatment, financial statement presentation and disclosures related to agricultural activity. Biological assets should be measured at their fair value less estimated point-of-sale costs, except where fair value cannot be measured reliably. Agricultural produce harvested from an enterprise’s biological assets should be measured at its fair value less estimated point-of-sale costs at the point of harvest. If an active market exists for a biological asset or agricultural produce, the quoted price in that market is the appropriate basis for determining the fair value of that asset. If an active market does not exist, an enterprise uses market determined prices or values when available. A gain or loss arising on initial recognition of biological assets and from the change in fair value less estimated point-of- sale costs of biological assets should be included in net profit or loss for the period in which it arises. If a government grant related to a biological asset measured at its fair value less estimated point-of-sale costs is conditional, including where a government grant requires an enterprise not to engage in specified agricultural activity, an enterprise should recognise the government grant as income when the conditions attaching to the government grant are met.