Biological assets refer to living animals or plants held by an entity. These assets are initially measured at fair value less costs to sell, and subsequently at the lower of cost and fair value less costs to sell. Any gain or loss arising from changes in fair value less costs to sell is recognized in profit or loss. Biological assets include livestock, agricultural produce such as harvested crops, and government grants for biological assets.
Biological assets refer to living animals or plants held by an entity. These assets are initially measured at fair value less costs to sell, and subsequently at the lower of cost and fair value less costs to sell. Any gain or loss arising from changes in fair value less costs to sell is recognized in profit or loss. Biological assets include livestock, agricultural produce such as harvested crops, and government grants for biological assets.
Biological assets refer to living animals or plants held by an entity. These assets are initially measured at fair value less costs to sell, and subsequently at the lower of cost and fair value less costs to sell. Any gain or loss arising from changes in fair value less costs to sell is recognized in profit or loss. Biological assets include livestock, agricultural produce such as harvested crops, and government grants for biological assets.
Biological assets refer to living animals or plants held by an entity. These assets are initially measured at fair value less costs to sell, and subsequently at the lower of cost and fair value less costs to sell. Any gain or loss arising from changes in fair value less costs to sell is recognized in profit or loss. Biological assets include livestock, agricultural produce such as harvested crops, and government grants for biological assets.
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BIOLOGICAL ASSETS
DEFINITION a. INITIAL, FV – COST TO SELL
- BIOLOGICAL ASSETS, non-current assets refer b. SUBSEQUENT, LCNRV to living animals or living plants GAIN OR LOSS - AGRICULTURAL PRODUCE, harvested product of - Recognized on initial recognition and any biological assets subsequent changes - HARVEST, detachment of produce from - Should be included in profit or loss biological asset/ cessation of biological asset - Disclosure of gain/loss on initial recognition life’s processes only - AGRICULTURAL ACTIVITY, management by an entity of the biological transformation and BIOLOGICAL ASSETS ATTACHED TO LAND harvest of biological assets for sale/ for - FV of land – FV of Combined Assets = FV of conversion into agricultural produce/ into Biological Assets additional biological assets o Capability to change GOVERNMENT GRANT o Management of change 1. UNCONDITIONAL o Measurement of change a. Measured at FV – Cost to Sell - BIOLOGICAL TRANSFORMATION i. Recognized as income when o Growth – increase in quantity/ receivable improvement in quality b. Measured at Cost – A/Dep’n or o Degeneration – decrease in quantity/ Impairment Loss deterioration in quality i. PAS 20 o Procreation – additional living thing 2. CONDITIONAL o Production of agricultural produce a. Measured at FV – Cost to Sell - FAIR VALUE, price that would be received to sell i. Recognized as income when an asset/ paid to transfer a liability in an orderly conditions are met transaction between market participants at the b. Measured at Cost – A/Dep’n or measurement date Impairment Loss o LEVEL 1 INPUTS – quoted prices for i. PAS 20 identical assets in an active market o LEVEL 2 INPUTS – quoted price for DISCLOSURE similar assets in an active market and - PRICE CHANGE quoted price for similar/ identical FV at year-end xx assets in an inactive market Less: Acquisition Cost xx o LEVEL 3 INPUTS – developed by an Price change xx entity - PHYSICAL CHANGE FV at year-end (present age) xx RECOGNITION Less: FV at year-end (Previous age) xx 1. the entity controls the asset as a result of past Physical change xx events 2. it is probable that future economic benefits will - TOTAL CHANGE IN FV flow Price change xx 3. the FV or cost of the asset can be measured Add: Physical change xx reliably Total change in FV xx MEASUREMENT BIOLOGICAL ASSETN
- Initially, FV = Cost – A/Dep’n or Impairment
Loss a. INITIAL, FV – COST TO SELL b. SUBSEQUENT, FV – COST TO SELL 2. AGRICULTURAL PRODUCE