PAGE1

FI
NANCI
ALACCOUNTI
NGANDREPORTI
NG
PAS41-AGRI
CULTURE
Obj
ect
iveofPAS41
Theobjecti
veofPAS41i st oest abl
i
shstandardsofaccount i
ngforagricul
tur
alact
ivi
ty--the
managementoft hebi
ologicalt
ransfor
mati
onofbi ol
ogicalasset
s(l
ivi
ngplantsandani
mal s)i
nto
agr
icul
tur
alproduce(
harvestedproductoft
heenterpr
ise'
sbiologi
cal
asset
s).
KeyDef
ini
ti
ons:
 Agr
icul
tur
alact
ivi
tyi
sthemanagementbyanent
it
yoft
hebi
ologi
calt
ransf
ormat
ionof
bi
ologi
cal
asset
sforsal
e,i
ntoagr
icul
tur
alpr
oduce,
ori
ntoaddi
ti
onal
biol
ogi
cal
asset
s.
 Agr
icul
tur
alpr
oducei
sthehar
vest
edpr
oductoft
heent
it
y’sbi
ologi
cal
asset
s.
 Abi
ologi
cal
asseti
sal
i
vingani
mal
orpl
ant
.
 Bi
ologi
calt
ransf
ormat
ioncompr
isest
hepr
ocessesofgr
owt
h,degener
ati
on,pr
oduct
ion,
andpr
ocr
eat
iont
hatcausequal
i
tat
iveorquant
it
ati
vechangesi
nabi
ologi
cal
asset
.
 Agr
oupofbi
ologi
cal
asset
sisanaggr
egat
ionofsi
mil
arl
i
vingani
mal
sorpl
ant
s.
 Har
vesti
sthedet
achmentofpr
oducef
rom abi
ologi
calassetort
hecessat
ionofa
bi
ologi
cal
asset
’sl
i
fepr
ocesses.
 Bear
erpl
anti
sal
i
vingpl
antt
hat
:
a.Isusedintheproduct
ionpr
ocessofagricul
tur
alpr
oduce,
b.Isexpect
edtobearproduceformorethanoneperiod
c. Hasaremoteli
keli
hoodofbeingsol
d(exceptaspartofi
nci
dent
alscr
apsal
es)
.

I
nit
ial
Recogni
ti
on
Anenterpri
seshouldr
ecognizeabiologi
calassetoragri
cul
tur
eproduceonlywhentheent
erpr
ise
contr
olstheassetasaresultofpastevent
s,iti
sprobabl
ethatfut
ureeconomicbenef
it
swil
lfl
ow
totheenter
pri
se,andt
hefairval
ueorcostoftheassetcanbemeasuredreli
abl
y.
Measur
ement
 Biol
ogicalassetsshouldbemeasuredoninit
ialr
ecognit
ionandatsubsequentr
eport
ing
datesatfai
rvaluelesscost
sofdi
sposal
,unl
essfai
rvaluecannotber
eli
abl
ymeasured.
 Agri
cultur
alproduceshouldbemeasuredatf
airval
uel
esscost
sofdi
sposalatt
hepointof
harvest
.Becauseharvestedproducei
samarketabl
ecommodit
y,t
her
eisno'measur
ement
rel
i
abili
ty'
excepti
onforproduce.
 Thegainoninit
ialr
ecogni
ti
onofbiol
ogicalasset
satfairval
ue,andchangesi
nfai
rval
ueof
bi
ologi
calasset
sduringaperi
od,
arereportedinnetpr
ofitorl
oss.
 Againonini
ti
alr
ecogni
ti
onofagri
cul
turalpr
oduceatf
airv
alueshoul
dbei
ncl
udedi
nnet
pr
ofi
torl
ossfort
heperi
odinwhi
chitari
ses.
 Allcostsr
elat
edt obiol
ogicalasset
sthatar
emeasur edatf ai
rvaluearer
ecogni
zedas
expenseswhenincur
red,ot
herthancost
stopurchasebi
ologi
calassets.
 Bearerplantsareaccountedf orunderPAS16usi ngt hecostmodel ,orthereval
uati
on
model.Beforebearerpl
antsareabletobearagri
cult
uralproduce(i
.e.bef
orematur
ity
),t
hey
are accounted foras self
-constr
ucted i
tems ofpr opert
y,plantand equi
pment .The
agri
cult
uralproduceoft
hebear erpl
antremainswit
hinthescopeofPAS41andi stheref
ore
accountedforatfai
rval
ue.
 PAS41pr esumest hatfairval
uecanber el
i
ablymeasuredformostbiol
ogi
calasset
s.
However
,thatpresumpt i
oncanber ebut
tedf orabi
ologi
calassett
hat
,attheti
mei tis
i
nit
ial
l
yrecogni
zedinfinanci
alst
atement
s.Insuchacase,
 Theasseti smeasur
edatcostl
essaccumulateddepreci
ati
onandimpai
rmentlossesifthe
assetdoesnothaveaquotedmarketpr
icei
nanact i
vemar ketandf
orwhi
chothermet hods
ofr easonabl
y esti
mat
ing fai
rv al
ue are det
ermined to be cl
ear
lyinappropri
ate or
unworkable.
 Buttheenter
pri
semuststi
l
lmeasureallofit
sotherbi
ologi
calasset
satfai
rval
ue.I
f
ci
rcumst
anceschangeandf
airv
aluebecomesrel
i
ablymeasur
able,aswit
cht
ofai
rval
ue

10/
16
 PAGE2
l
essdi
sposal
cost
sisr
equi
red.
Measur
ementoff
airv
alue
 Aquot
edmar
ketpr
icei
nanact
ivemar
ketf
orabi
ologi
calassetoragr
icul
tur
alpr
oducei
s
themostr eliablebasi sfordet erminingt hefairvalueoft hatasset .Ifanact i
vemar ketdoes
notexi st,PAS41pr ovidesgui dancef orchoosi nganot hermeasur ementbasi s.Firstchoice
woul dbeamar ket-
det erminedpr icesuchast hemostr ecentmar ketpr i
ceforthatty peof
asset ,ormar ketpricesf orsi milarorr elat
edasset s;ifreli
ablemar ket-basedpricesar enot
av ail
abl e,t hepr esentv alueofexpect ednetcashf lowsf rom t heassetshoul dbeuse,
discount edatacur rentmar ket-determi nedpre-taxrate.
 Inl i
mi ted ci rcumst ances,costi s an i ndicatoroff airv alue,wher elitt
le biological
transfor mat ionhast akenpl aceort hei mpactofbi ol
ogicaltransf ormat i
ononpr i
cei snot
expect edt obemat erial.
 Thef airv al ueofabi ologicalasseti sbasedoncur r
entquot edmar ketpri
cesandi snot
adj ustedt or eflecttheact ualpr iceinabi ndingsal econt r
actthatpr ov idesf
ordel i
veryata
futuredat e.
Ot
herI
ssues
a.Thechangei
nf ai
rval
ueofbiologi
calassetsi
spartphy
sicalchange(gr
owt h,
etc.)andpart
uni
tpri
cechange.Separ
atediscl
osureofthetwocomponentsisencouraged,notrequi
red.
b.Fai
rval
uemeasur
ementst
opsathar
vest
.PAS2,
Inv
ent
ori
es,
appl
i
esaf
terhar
vest
.
c. Agri
cultur
allandisaccount
edforunderPAS16,Proper
ty,Pl
antandEqui
pment.Howev er
,
biol
ogicalasset
st hatar
ephysi
call
yattachedt
olandaremeasur edasbi
ologi
calassets
separatefr
om theland.
d.I
ntangi
bleasset
srelati
ngtoagri
cult
uralact
ivi
ty(
forexampl
e,mi
l
kquot
as)ar
eaccount
ed
f
orunderPAS38, I
ntangibl
eAsset
s.
e. Uncondi
ti
onalgover
nmentgrant
srecei
vedinrespectofbi
ologicalasset
smeasur
edatf
air
val
uearerepor
tedasincomewhenthegrantbecomesrecei
v able.

Di
scl
osur
erequi
rement
sinPAS41i
ncl
ude:
 Car r
yingamountofbi ologi calassets
 Descr i
pti
onofanent erpr ise'
sbiological asset s,
bybr oadgr oup
 Changei nf airvaluedur ingt heper i
od
 Fairvalueofagr icult
ur al producehar vest eddur i
ngt heper i
od
 Descr i
pti
onoft henat ur eofanent erprise'
sact ivi
tieswitheachgr oupofbi ol
ogicalassets
andnon- financialmeasur esorest imatesofphy si
calquant iti
esofout putduri
ngt heperiod
andasset sonhandatt heendoft heper iod
 Informationaboutbi ologi calassetswhoset i
tleisrestri
ctedort hatarepledgedassecur i
ty
 Commi tment sfordev elopmentoracqui sit
ionofbi ologi
cal assets
 Financialriskmanagementst r
ategies
 Met hodsandassumpt ionsf ordeter miningf airval
ue
 Reconci l
iationofchangesi nthecar ryingamountofbi ologicalassets,showingsepar at
ely
changes i nv alue,pur chases,sal es,har vesti
ng,busi ness combi nations,and foreign
exchangedi ff
erences
Discl
osureofaquant i
fi
eddescr i
pti
onofeachgr oupofbiologi
calassets,dist
ingui
shingbetween
consumabl eandbear erasset sorbet weenmat ureandimmat ur
easset s,isencouragedbutnot
requi
red.Iff airvaluecannotbemeasur edrel
iably,addi
ti
onalrequi
reddisclosur
esinclude:
 De scripti
onoft heasset s
 Ane xplanationoft heci rcumstances
 I fpossi ble,ar angewi t
hinwhichf ai
rvalueishighl
yli
kelytofall
 Ga inorl ossr ecogni zedondisposal
 De preciationmet hod
 Us eful l
ivesordepr eciati
onrates
 Gr osscar ryingamountandt heaccumul at
eddepreciati
on,begi
nningandendi ng
Ift
hefairvalueofbi
ologi
calasset
spr
evi
ousl
ymeasur
edatcostnow becomesav
ail
abl
e,cer
tai
n
addi
ti
onaldiscl
osur
esarerequi
red.
Discl
osuresrel
ati
ngt ogovernmentgrantsincl
udet
henatur
eandext
entofgr
ant
s,unf
ulf
il
led
condit
ions,
andsigni
fi
cantdecreasesi
ntheexpect
edl
evel
ofgr
ant
s.

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16