PAS 41 & 20 - Agriculture and Government Grants

PAS 4`1 & 20

Biological Asset

A living animal or plant

Consumable Biological Asset

To be harvested as agricultural produce or sold as biological assets

Bearer Biological Asset

Held to bear produce. Only the produce is harvested while the bearer biological asset remains

Bearer plant

A living plant that:

• Used in the production supply or agricultural produce;

• Expected to bear produce for more than one period; and

• Has a remote likelihood of being sold as agricultural produce, except for incidental scrap sales

Living animals

Classified as biological assets if they relate to agricultural activity

Living plants

Classified as biological assets only if they are consumable

Bearer plants

Classified as Property, Plant, and Equipment

Not bearer plants

Plants that are to be harvested as agricultural produce are _____________

Consumable plant; biological asset

A tree that is intended to be cut down and used as lumber is a _________, and therefore classified as _________

Bearer plant; Property, Plant, and Equipment

A tree that is intended to bear fruits and only the fruits are harvested while the tree remains as __________, and therefore classified as __________

Agricultural Produce

The harvested produce of the entity’s biological assets

Harvest

The detachment of produce from a biological asset or the cessation of a biological asset’s life processes

Living Animal or Plant

Biological Asset (PAS 41)

Bearer Plants

Property, Plant, and Equipmetn (PAS 16)

Unprocessed Harvested Produce

Agricultural Produce (PAS 41)

Processed Product

Inventory (PAS 2)

Agricultural Activity

The management by an entity of the biological transformation and harvest to biological assets for sale or for conversion into agricultural produce or into biological assets

Common features of agricultural activities:

1. Capability to change

2. Management of change

3. Measurement of change

Capability to change

Living animals and plants are capable of biological transformation

Management of change

Management facilitates biological transformation by enhancing, or at least stabilizing, conditions necessary for the process to take place

Measurement of change

The change in quality or quantity brought about by biological transformation or harvest is measured and monitored as a routine management function

Biological Transformation

Comprises the following processes that cause qualitative or quantitative changes in a biological asset

Asset changes through:

1. Growth

2. Procreation

3. Degeneration

Measurement of Biological Asset

Fair value less costs to sell