IAS 41 Agriculture Accounting Standards

The value at which an asset could be exchanged between knowledgeable, willing parties in an arm's length transaction minus the costs to sell.

The initial value used to track a biological asset at the time it is first recorded in the company's accounting records.

Changes in value due to the initial recognition of biological assets are included in the company's net income (profit or loss).

Costs directly related to the raising, growing, or harvesting of biological assets are recognized as expenses when they are incurred.

If a reliable fair value cannot be determined for a biological asset, it should be recorded using cost less accumulated depreciation and impairment losses. This method helps ensure an accurate accounting of the asset's declining value during its useful life.

Agricultural produce is measured at its fair value less estimated costs to sell at the time it is harvested. This helps ensure that the produce is recorded at its true economic value.

IAS 41 provides guidelines for the accounting of agricultural activities and ensures consistency and transparency in the financial reporting of agricultural companies.

Land used solely for agricultural purposes is excluded from the scope of IAS 41. It is instead accounted for under IAS 16, Property, Plant and Equipment.

A living plant or animal that is used in agricultural production and held for the purpose of producing agricultural produce, generating biological transformation, or both.

A living plant used in agricultural production that is expected to bear produce for more than one period. It is treated differently than agricultural produce due to its extended life.

IAS 41 Agriculture aims to provide specific guidance for managing the biological transformation of biological assets into agricultural produce, ensuring consistent accounting practices.

Intangible assets related to agricultural activities are not within the scope of IAS 41. They are accounted for under other relevant accounting standards.

A living animal or plant that is used in agricultural production. This includes livestock, crops, and other agricultural organisms.

The amendments to IAS 41 exclude bearer plants from its scope for annual periods beginning on or after 1 January 2016. This means that bearer plants are not considered biological assets under IAS 41 and are instead accounted for under other relevant standards.

A plant expected to bear produce for more than one period. It is classified as a long-term asset and has a remote likelihood of being sold as agricultural produce.

Agricultural produce at the point of harvest is measured at its fair value less estimated costs to sell. This ensures that the produce is recorded at its true economic value.

When agricultural produce is initially recognized at its fair value less costs to sell, any gains arising from this measurement are recognized at the point of harvest.

Costs related to biological assets are recognized as expenses when they are incurred. This includes costs associated with raising, growing, and harvesting the assets.

The asset is measured at cost less accumulated depreciation and impairment losses. This method helps ensure an accurate accounting of the asset's declining value during its useful life.

Agricultural land is accounted for under IAS 16, Property, Plant and Equipment. It is considered a fixed asset with a long-term useful life.