IAS 41 - Agriculture
Financial Dictionary — IFRS & IAS Standards
Definition
IAS 41 establishes accounting requirements for biological assets and agricultural produce. It primarily uses fair value less costs to sell as the measurement basis.
Detailed Explanation
IAS 41 sets accounting for biological assets and agricultural produce, generally using fair value less costs to sell and recognizing changes in profit or loss.
Common Uses
- Used when applying IFRS/IAS requirements for recognition, measurement, presentation, or disclosure.
- Used to justify accounting treatments in working papers and financial statement notes.
- Used to justify accounting treatments in working papers and financial statement notes.
Practical Example
- Example: When preparing year-end reporting, management applies **IAS 41 - Agriculture** to determine the correct IFRS treatment and disclosures.
Why This Term Matters
- Why it matters: Ensures compliance with IFRS, improves comparability across periods and entities, and reduces financial reporting risk.