B8 The Standard prescribes, among other things, the accounting treatment for biological assets and for the initial measurement of agricultural produce harvested from an entity's biological assets at the point of harvest. However, the Standard does not deal with the processing of agricultural produce after harvest, since the Board did not consider it appropriate to undertake a partial revision of IAS 2 Inventories which deals with the accounting treatment for inventories under the historical cost system. [The term 'historical cost system' is no longer applicable owing to revisions made to IAS 2 in December 2003.] The processing after harvest is accounted for under IAS 2 or another applicable International Accounting Standard (for example, if an entity harvests logs [As the result of an amendment by the IASB, contained in Improvements to IFRSs issued in May 2008, 'logs' is an example of produce that has been processed rather than an example of unprocessed produce.] and decides to use the
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