The change in fair value of biological assets is part physical change (growth, etc) and part unit price change. Separate disclosure of the two components is encouraged, not required. [IAS 41.51]
Agricultural produce is measured at fair value less costs to sell at harvest, and this measurement is considered the cost of the produce at that time (for the purposes of IAS 2 Inventories or any other applicable standard). [IAS 41.13]
Agricultural land is accounted for under IAS 16 Property, Plant and Equipment. However, biological assets (other than bearer plants) that are physically attached to land are measured as biological assets separate from the land. In some cases, the determination of the fair value less costs to sell of the biological asset can be based on the fair value of the combined asset (land, improvements and biological assets). [IAS 41.25]
Intangible assets relating to agricultural activity (for example, milk quotas) are accounted for under IAS 38 Intangible Assets.
Unconditional government grants received in respect of biological assets measured at fair value less costs to sell are recognised in profit or loss when the grant becomes receivable. [IAS 41.34]
If such a grant is conditional (including where the grant requires an entity not to engage in certain agricultural activity), the entity recognises the grant in profit or loss only when the conditions have been met. [IAS 41.35]
Disclosure requirements in IAS 41 include:
aggregate gain or loss from the initial recognition of biological assets and agricultural produce and the change in fair value less costs to sell during the period* [IAS 41.40] description of an entity's biological assets, by broad group [IAS 41.41] description of the nature of an entity's activities with each group of biological assets and non-financial measures or estimates of physical quantities of output during the period and assets on hand at the end of the period [IAS 41.46] information about biological assets whose title is restricted or that are pledged as security [IAS 41.49] commitments for development or acquisition of biological assets [IAS 41.49] financial risk management strategies [IAS 41.49] reconciliation of changes in the carrying amount of biological assets, showing separately changes in value, purchases, sales, harvesting, business combinations, and foreign exchange differences* [IAS 41.50]
* Separate and/or additional disclosures are required where biological assets are measured at cost less accumulated depreciation [IAS 41.55]
Disclosure of a quantified description of each group of biological assets, distinguishing between consumable and bearer assets or between mature and immature assets, is encouraged but not required. [IAS 41.43]
If fair value cannot be measured reliably, additional required disclosures include: [IAS 41.54]
description of the assets an explanation of why fair value cannot be reliably measured if possible, a range within which fair value is highly likely to lie depreciation method useful lives or depreciation rates gross carrying amount and the accumulated depreciation, beginning and ending.
If the fair value of biological assets previously measured at cost subsequently becomes available, certain additional disclosures are required. [IAS 41.56]
Disclosures relating to government grants include the nature and extent of grants, unfulfilled conditions, and significant decreases expected in the level of grants. [IAS 41.57]