PAS 41 Agriculture: Biological Assets

Agriculture

• “entity’s management” of the biological transformation of biological assets and harvest of agricultural produce

Features of Agriculture

• Capability to change - biological transfromation

• Management of change

• Measurement of change

_{^{**distinguishes agriculture from other activities}}

Management of Change

• A harvest of unmanaged sources are NOT agriculture (e.g. fishing on the sea, hunting, etc.)

Measurement of Change

• part of the routine management to monitor quantity and quality changes brought about by biological transformation

Biological Transfromation

1. Assets are capable to change thru:

• Growth - paglaki

• Procreation pagpaparami

• Degeneration - pagtanda

2. Produces agricultural produce

Inclusion on PAS 41

• related to “Agricultural Activity”:

  • (1) Biological assets; except bearer plants

  • (2) Agricultural produce at point of harvest (still on raw state)

  • (3) Unconditional government grants related to biological assets

Biological Assets in PAS 41

• Living animals and living plants (related to agricultural activity)

Agricultural Produce at point of harvest

Unconditional Government Grant

Exclusion to the PAS 41

• Bearer plants [PAS 16]

• Government grants related to bearer plants [PAS 20]

• Land related to agriculture [PAS 16]

• Intangible Assets related to agriculture [PAS 38]

Mature

• ready to harvest

• can sustain regular harvest

Immature

• not ready for harvest

• cannot sustain regular harvest