Definitions of Terms

Active market

Market for which all these conditions exist: the items traded within the market are homogeneous; willing buyers and sellers can normally be found at any time; and prices are available to the public.

Agricultural activity

Managed biological transformation of biological assets into agricultural produce for sale, consumption, further processing, or into other biological assets.

Agricultural land

Land used directly to support and sustain biological assets in agricultural activity; the land itself is not a biological asset, however.

Agricultural produce

The harvested product of the enterprise's biological assets awaiting sale, processing, or consumption.

Bearer biological assets

Those which bear agricultural produce for harvest. The biological assets themselves are not the primary agricultural produce, but rather are self-regenerating (such as sheep raised for wool production; fruit trees).

Biological assets

Living plants and animals controlled by the enterprise as a result of past events. Control may he through ownership or through another type of legal arrangement.

Biological transformation

The processes of growth, degeneration, production and procreation, which cause qualitative and quantitative changes in living organisms and the generation of new assets in the form of agricultural produce or additional biological assets of the same class.

Carrying amount

Amount at which an asset is recognized in the balance sheet after deducting any accumulated depreciation or amortization and accumulated impairment losses thereon.

Consumable biological assets

Those which are to be harvested as the primary agricultural produce, such as livestock intended for meat production, annual crops, and trees to be felled for pulp.

Fair value

The amount for which an asset could be exchanged or a liability settled between knowledgeable, willing parties in an arm's-length transaction.

Group of biological assets

A herd, flock, etc., that is managed jointly to ensure that the group is sustainable on an ongoing basis, and is homogeneous as to both type of animal or plant and activity for which the group is deployed.


The detachment of agricultural produce from the biological asset, the removal of a living plant from agricultural land for sale and replanting, or the cessation of a biological asset's life processes.

Immature biological assets

Those that are not yet harvestable or able to sustain regular harvests.

Mature biological assets

Those which are harvestable or able to sustain regular harvest. Consumable biological assets are mature when they have attained harvestable specifications; bearer biological assets are mature when they are able to sustain regular harvests.

Net realizable value

Estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale.

Wiley Ias 2003(c) Interpretation and Application of International Accounting Standards
WILEY IAS 2003: Interpretation and Application of International Accounting Standards
ISBN: 0471227366
EAN: 2147483647
Year: 2005
Pages: 147 © 2008-2017.
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