ECONOMICS

Detailed explanation-1: -12 A biological asset shall be measured on initial recognition and at the end of each reporting period at its fair value less costs to sell, except for the case described in paragraph 30 where the fair value cannot be measured reliably.

Detailed explanation-2: -IAS 41 establishes the accounting treatment for biological assets during their growth, degeneration, production and procreation, and for the initial measurement of agricultural produce at the point of harvest.

Detailed explanation-3: -The International Accounting Standard 41 (IAS 41) states that a biological asset is any living plant or animal owned by the business, and they are typically measured at fair value minus selling costs. For example, livestock such as goats, cows, sheep, pigs, and fish are all considered biological assets.

Detailed explanation-4: -Biological assets should be measured at initial recognition, and at the end of each reporting period, at fair value less estimated costs to sell. Agricultural produce is measured, at the point of harvest, at fair value less estimated costs to sell at the point of harvest.

Detailed explanation-5: -A gain or loss arising on initial recognition of a biological asset at fair value less costs to sell and from a change in fair value less costs to sell of a biological asset shall be included in profit or loss for the period in which it arises.