1. Any living plant or animal that is owned by the business is considered a biological asset, and its value is usually calculated as
fair value minus selling costs. Agricultural produce refers to the products of animals and crops that are consumed by humans.
Harvest is the process of collecting produce from a biological asset or stopping the life processes of a biological asset.
2. Agricultural activities" refers to uses and practices related to agriculture, such as expanding, breeding, or producing more
agricultural products; changing crops and substitution; and allowing the use of land for agricultural purposes. It is the
management of the biological transformation of biological assets into products for market, farm products, or other biological
assets by a company.
3. Biological transformation comprises the processes of growth, degeneration, production and procreation that cause
qualitative or quantitative changes in a biological asset.
4. In accounting, biological transformation is relevant to the accounting for agricultural activity, which involves the
transformation of biological assets (living plants and animals) into agricultural produce 3.