ABSTRACT
International Accounting Standard (IAS) 41 was originally issued in December 2000 and first applied to annual periods beginning on or after 1 January 2003. IAS 41 prescribes the accounting treatment for biological assets during the period of biological transformation and for the initial measurement of agricultural produce at the point of harvest. In addition, the standard prescribes financial statement presentation and disclosures related to agricultural activity. Biological assets shall be measured on initial recognition and at subsequent reporting dates at fair value less costs to sell, unless fair value cannot be reliably measured. Agricultural produce shall be measured at fair value less costs to sell at the point of harvest. The fair value measurement of a biological asset or agricultural produce may be facilitated by grouping biological assets or agricultural produce according to significant attributes. Once the fair value of the biological asset becomes reliably measurable, the biological asset shall be measured at fair value less costs to sell.
