1. IAS 41 Biological Asset 5-1 Definition
Agriculture activity is the management by an entity of the biological transfomation of biological asset for sale, into agricultral product or into additional biological asset.
Agriculture produce is the harvested product of an entity's biological asset.
Biological assets are living animals or plants.
Biological transformation compromises the processes of growth, degeneration, production and procreation that cause qulitative and quantitative changes in biological asset.
Harvest is the detachment of produce from a biological asset or cessation of biological asset's life processes.
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5-1

2. IAS 41 Biological Asset
FV is the price that would be receives to sell an asset or paid to transfer a liability in an ordely transaction between market participants at measurement date.(IFRS 13)
Carrying amount is the amount at which an asset is recognized in the SFP.
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3. IAS 41 Biological Asset Recognition
The entity controls the assets as result of past event.
It is probable that the future economic benefits associated with the asset will flow to the entity.
The FV or cost of the asset to the entity can be measured realiably.
Mesurement
At each year end all biological asset should be measured at FV less estimate point-of-sale costs.
If a FV cannot be determined beacuse market determined price or values are not available. Then the biological asset can be meaured at cost less accumulated depreciation and impairement losses.
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4. IAS 41 Biological Asset Presentation and disclosure
In the SFP biological assets should be classified as seprate class of asset falling under either current or non-current classifications.
Biological asset should be subclassified into:
1) Class of animal or plant
2) Nature of activities (consumable or bearer)
3) Maturity or inmaturiy for intended purpose.
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5. IAS 41 Biological Asset
Agriculture produce: it is recogonized at the point of harvest (eg: detachment from biological asset). Agriculture produce is either incapable of biological process or such process remain dormant (eg. stored grain).
Recognition ends once the produces enters trading activities or production processes.
Agriculture produce should be measured at each year end at FV less estimated point-of-sale costs. The change in carrying amount of agriculture produce held at year end should be recognized as income or expense in profit or loss.
Agriculture produce should be classified as inventory in SFP and disclosed seperately either in the SFP or in the notes.
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