Page 85 - SBR Integrated Workbook STUDENT S18-J19

Agriculture and inventories

Agriculture

1.1 Definitions from IAS 41 Agriculture

A biological asset is a living plant or animal.

Agricultural produce is the produce harvested from a biological asset.

1.2 Summary of recognition and measurement

Agricultural
AGRICULTURE
grants

Recognise in P/L
Biological Agricultural when conditions
assets produce
met

Initially: Initially:

Recognise at fair Recognise at fair
value less costs to value less costs to
sell sell

Immediately
reclassify as
inventories
At year end:

Revalue to fair
value less costs to If fair value not
sell available then
measure at cost
Gain or loss in P/L less depreciation

79