Biological Assets Classification

Biological Assets Classification
MFRS 141 Agriculture applies to account
for biological assets (except for bearer
plants), agricultural produce at the point of
harvest and government grants that relates
to agricultural activity
A living animal or plant
Key Terms
Agricultural activity
Common Features
Capability to change
Management of change
Measurement of change
Biological transformation
Agriculture produce (MFRS 141)
Bearer plants (MFRS 116)
The bearer plants would continue to bear
the produce until they are no longer
Finished Products (MFRS 102)
Fair Value
Based on its present location and condition.
Active market exists
Market quoted price (most relevant)
No active market exists.
Most recent transaction price
Market price for similar assets
Sector benchmark
PV of expected net cash flows
FV cannot be measured reliably
Cost Acc,Dep, Acc. IL
FV can be measured reliably
The aggregate gain or loss that arise
A description of each group of biological
The nature of activities
The methods and significant assumptions
used in determining the fair value
The fair value less costs to sell
A reconciliation of changes in the carrying
amount of biological assets
FV cannot be measured reliably
A description of the biological assets
An explanation of why fair value cannot be
measured reliably
The range of estimates within which fair
value is highly likely to lie (if possible)
The entity controls the assets as a result of
past events.
It is probable that future economic benefit
associated with the asset will flow to the
The fair value or cost of the asset can be measured reliably.