Overview
IAS 41 Agriculture sets out the accounting for agricultural activity – the transformation of biological assets (living plants and animals) into agricultural produce (harvested product of the entity’s biological assets). The standard generally requires biological assets to be measured at fair value less costs to sell.
IAS 41 was originally issued in December 2000 and first applied to annual periods beginning on or after 1 January 2003.
Summary of IAS 41
The objective of IAS 41 is to establish standards of accounting for agricultural activity – the management of the biological transformation of biological assets (living plants and animals) into agricultural produce (harvested product of the entity’s biological assets).
IAS 41 applies to biological assets with the exception of bearer plants, agricultural produce at the point of harvest, and government grants related to these biological assets. It does not apply to land related to agricultural activity, intangible assets related to agricultural activity, government grants related to bearer plants, and bearer plants. However, it does apply to produce growing on bearer plants.
IAS-41 Agriculture Download