The standard says that biological assets should be measured at fair value less cost to sell at the time of harvest. Its aim is to accounts for transformation of biological assets into agricultural produce.
An entity recognises a biological asset or agriculture produce only when the entity controls of the asset as a result of past events, is probable that future economic benefits will flow to the entity, and the fair value or cost of the asset can be measured reliably.
Increase or decreased in recognized value of biological assets should be included in profit and loss. All costs related to biological assets are recognised as expenses except which is used to purchase biological assets. Agricultural land is recognized according to IAS-16. While some biological assets physically attached to land are recognized as biological assets under IAS-41. And any other intangible assets related to agriculture land is recognized separately under IAS-38 intangible assets.
If the grant is unconditional it should be recognised under the profit and loss when it is receivable. And if it is conditional then it should only be recognised upon fulfilling of conditions.
Disclosure related to IAS-41
1. Cumulative gain or loss on initial recognition of biological assets or change in fair value less cost to sell
2. Description of entities all biological assets in group
3. Description of activities of all biological assets of entity by group and non-financial measures of physical quantities of output at start, during and at the end of period.
4. Any biological assets which is pledged
5. Developments or acquisition of biological assets
6. If the fair value of biological assets cannot be measured reliably then it should be stated at cost less accumulated depreciation for this Additional disclosure are also required
7. Quantitative description of all biological assets separately describing bearer assets and consumable assets
8. Descriptions related to government grants its nature, conditions and fulfilment.