FAR 6814

PAS 41 – AGRICULTURE
PAS 41 shall be applied to account for the ff. when
they relate to agricultural activity:
1. Biological assets
2. Agricultural produce at point of harvest
3. Government grant related to a bio asset

Agricultural Activity - management by an entity of the

biological transformation and harvest of biological
assets for sale or for conversion into agricultural
produce or into additional biological assets

RECOGNITION
1. Entity has control
2. Probable inflow of future economic benefit
3. FV or cost can be measured reliably

MEASUREMENT
1. Biological asset – FV less cost of disposal
2. Agricultural produce – FV less cost of disposal
at point of harvest
- After point of harvest apply PAS 2 -
Inventories

FAIR VALUE OF BIOLOGICAL ASSET

- Presumption that FV can be measured reliably
for a biological asset
- Presumption can be rebutted only on initial
recognition for a bio asset
- If FV cannot be measured reliably, biological
asset shall be measured using the cost model.
Cost less accumulated depreciation and any
accumulated impairment loss

BEARER PLANTS – accounted for using PAS 16

Property, Plant and Equipment
1. Used in the production or supply of
agricultural produce
2. Expected to bear produce for mor than one
period
3. Has remoted likelihood of being sold as
agricultural produce except as scrap

DUAL USE PLANTS – accounted for as biological asset

BEARER ANIMALS – accounted for under PAS 41