BIOLOGICAL ASSETS

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BIOLOGICAL ASSETS by Mind Map: BIOLOGICAL ASSETS

1. MFRS141 Agricultural

1.1. Biological asset is a living animal or plant

1.2. appies to

1.2.1. biological assets (except bearer plants),

1.2.2. agricultural produce at the point of harvest

1.2.3. government grants

1.3. does not applies to

1.3.1. land or intangible assets related to agricultural activity.

2. Key Terms

2.1. Agricultural activity

2.1.1. management of the biological transformation

2.1.2. harvest of biological assets

2.1.2.1. for sale

2.1.2.2. for conversion into agricultural produce OR into additional biological assets.

2.2. Biological transformation

2.2.1. processes of growth, degeneration, production, and procreation that cause qualitative or quantitative changes in a biological asset.

2.3. Agriculture produce

2.3.1. harvested produce of the entity’s biological assets.

2.4. Harvest

2.4.1. detachment of produce from a biological asset or the cessation of a biological asset’s life processes.

3. Common features of Agriculture Activities

3.1. Capability to change

3.2. Management of change

3.3. Measurement of change

4. Recognition

4.1. has controls the assets from past events

4.2. probable future economic benefit flow to the entity

4.3. fair value/cost of the asset can be measured reliably.

5. Measurement

5.1. BIological Asset

5.1.1. Initial Recognition

5.1.1.1. record at purchase price

5.1.1.2. DR Biological Asset CR Cash

5.1.2. Subsequent measurement

5.1.2.1. at the end of each reporting period

5.1.2.2. record at fair value less cost to sell

5.1.2.3. profit or loss

5.2. Agriculture Produce Harvested

5.2.1. fair value less costs to sell

6. Fair Value for Biological Assets

6.1. based on its present location and condition.

6.2. group according to their significant attributes such as by age or quality.

6.3. Fair Value Determination

7. Disclosure

7.1. gain/loss on initial recognition

7.2. description of each group of biological assets

7.3. nature of activities

7.4. Non-financial measures or estimates of the physical quantities

7.5. methods and significant assumptions used in determining the fair value

7.6. fair value less costs to sell

7.7. existence and carrying amount

7.8. amount of commitments for the development or acquisition of biological assets.

7.9. Financial risk management strategies

7.10. reconciliation of changes in the carrying amount between the beginning and the end of the current period.