BC39 Prior to the 2014 amendments, IAS 41 required all biological assets related to agricultural activity to be measured at fair value less costs to sell based on the principle that their biological transformation is best reflected by fair value measurement. IAS 41 defines ‘biological transformation’ as follows:

Biological transformation comprises the processes of growth, degeneration, production, and procreation that cause qualitative or quantitative changes in a biological asset.

BC40 IAS 41 has a single accounting treatment for all bearer and consumable biological assets within its scope. IAS 41 only distinguishes between bearer and consumable biological assets for disclosure purposes (see paragraphs 43–44 of IAS 41).