IAS 41 AGRICULTURE
1 INTRODUCTION AND SCOPE
IAS 41 applies to biological assets, agricultural produce at the point of harvest, and government grants covered by IAS 41.34–41.35 when they relate to agricultural activity (IAS 41.1).
A biological asset is a living animal (e.g. a sheep) or plant. Agricultural produce is the harvested product (e.g. wool) of the entity's biological assets. Harvest is the detachment of produce from a biological asset or the cessation of the life processes of a biological asset (IAS 41.4–41.5).
Agricultural activity is the management by an entity of the biological transformation and harvest of biological assets for sale or for conversion into additional biological assets or into agricultural produce. Biological transformation comprises the processes of growth, degeneration, production, and procreation that cause quantitative or qualitative changes in a biological asset (IAS 41.5–41.7).
IAS 41 neither applies to land related to agricultural activity (see IAS 16 and IAS 40) nor to intangible assets related to agricultural activity (see IAS 38) (IAS 41.2).
IAS 41 applies to agricultural produce only at the point of harvest. Thereafter, IAS 2 or another applicable Standard is applied. Accordingly, IAS 41 does not deal with the processing of agricultural produce after harvest because such processing is not included within the definition of agricultural activity (IAS 41.3).
A biological asset or agricultural produce is recognized when all of the ...