AGRICULTURE Accounting for Businesses
Initial Recognition  Biological asset initially
recognized at fair value less
cost of disposal
 Agricultural produce
harvested shall be measured
at fair value less cost of
disposal at point of harvest
 Agricultural produce growing
on bearer plant is measured
at fair value less cost of
disposal
Subsequent  Any subsequent changes in
Recognition fair value less cost of disposal
shall be included in profit or
loss.
Derecognition  Derecognized when sold
Other relevant
differences
Government Accounting
 Biological assets - initially and
measured at fair value less
costs to sell. Gain or loss
arising from measurement are
recognized in surplus or
deficit.
 Biological assets whose fair
value cannot be reliably
determined on initial
recognition are initially
measured at cost and
subsequently measured at cost
less accumulated depreciation
and accumulated impairment
losses.
 Agricultural produce - initially
measured at fair value less
costs to sell at the point of
harvest.
 Biological asset shall be
measured at fair value less
costs to sell
 Derecognized when sold
 INVESTMENT AND Accounting for
Government Accounting
DERIVATIVES Businesses
Initial Recognition  Financial assets Held for  A financial asset is recognized
trading are recognized at fair when an entity becomes a party
value not including to the contractual provisions of
transaction costs the instrument.
 Derivatives are designated as
hedging instruments and fair
value is booked to income
statement
 Available-for-sale financial
assets are recorded at their
fair value including related
purchase costs.
 Held to maturity-The
intention and ability to hold
the security to maturity has
to be evaluated on initial
recognition and confirmed at
the end of each reporting
period. The entire portfolio is
reclassified to financial assets
available for sale and
restated at fair value.

Subsequent recognition  Gains and losses on  Financial assets are initially

“Financial assets at fair value
through profit or loss” are
immediately booked to the
Income Statement.
 “Available for-sale financial
assets” are measured at fair
value unless a market price
or fair value cannot be
reliably determined.
measured at fair value plus
transaction costs, except for
financial assets at fair value
through surplus or deficit whose
transaction costs are expensed.
 Transaction costs are
incremental costs that are
directly attributable to the
acquisition, issue, or disposal of a
financial instrument

Derecognition  Investments in financial  An investment property is

assets can only be derecognized when it is disposed
derecognized once the or when it is permanently
contractual rights to receive withdrawn from use and no
 the cash flows deriving from
such investments have
expired (e.g. final
redemption of bonds) or if
the Group transfers the
financial asset and all of the
risks and benefits attached to
it.
Other relevant differences
future economic benefits or
service potential is expected
from its disposal.
 The difference between the net
disposal proceeds (if any) and the
carrying amount is recognized as
gain or loss in surplus or deficit.