Santos, Christian B.
BSA 4th Year
1. Describe Scope and Objective of IAS 41
 Scope
 IAS 41 applies to biological assets with the exception of bearer plants,
agricultural produce at the point of harvest, and government grants related to
these biological assets. It does not apply to land related to agricultural activity,
intangible assets related to agricultural activity, government grants related to
bearer plants, and bearer plants. However, it does apply to produce growing on
bearer plants.
 Objective
 The objective of IAS 41 is to establish standards of accounting for agricultural
activity – the management of the biological transformation of biological assets
(living plants and animals) into agricultural produce (harvested product of the
entity's biological assets).
2. Describe measurement of Biological Assets
 Biological assets should be measured at initial recognition, and at the end of each
reporting period, at fair value less estimated costs to sell.
3. Enumerate the disclosure requirements for Biological Assets
 Extensive disclosure is required by IAS 41, including:
 the aggregate gain or loss for the period on:
1. – initial recognition of biological assets
2. – initial recognition of agricultural produce
3. – change in fair value less estimated costs to sell of biological assets
 a description of, and the nature of its activities involving, each group of biological assets
 non-financial measures or estimates of the physical quantities of agricultural produce
output for the period and biological assets as at the year-end date
 restrictions on title, pledges and commitments in respect of biological assets
 a reconciliation of changes in the carrying amount of those biological assets between
the beginning and end of the reporting period. The reconciliation should include the
gain/loss arising from changes in fair value, purchases, sales, decreases due to harvest
and other changes
 For biological assets measured at cost less any accumulated depreciation and any
accumulated impairment losses, the standard requires the following additional
disclosure:
 a description of those biological assets
 an explanation of why fair value cannot be measured reliably
 the range of estimates within which fair value is highly likely to lie (if possible)
 the gain or loss recognized on disposal of those biological assets
 impairment losses (if any), reversals of impairment losses (if any) and
depreciation expense
 the depreciation method used
 the useful lives or the depreciation rates used
 the gross carrying amount and the accumulated depreciation at the beginning
and end of the period.

In addition, if the fair value of biological assets previously measured at cost less any
accumulated depreciation and any accumulated impairment losses subsequently
becomes reliably measurable, an enterprise should disclose a description of the
biological assets, an explanation of why fair value has become reliably measurable, and
the effect of the change. Disclosure is also required in respect of government grants
relating to managed agricultural activity.
Sources:
https://www.iasplus.com/en/standards/ias/ias41
https://www.accaglobal.com/in/en/student/exam-support-resources/dipifr-study-resources/technicalarticles/ias-41.html