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ACC 490 Biological Assets and Agricultural Produce Chapter 9: IAS 41 Spring 2012 1. What are biological assets? It is a living animal or a plant. It is has to have an agricultural produce from it. So, agricultural produce is NOT a biological asset. Agricultural produce must have value. 2. What are examples of biological assets? Would dogs for sale in a pet shop be classified as biological assets? Ex: sheep, cow Dogs for sale in a pet shop would be not considered a biological asset--it would only be classified as one if it was producing. If not and just for sale, its considered inventory. Ex: The parents at the breeder of the Goldendoodle are the biological assets. The puppies that the parents produce are the produce. At the pet store, those puppies become inventory because they were not as a result of anything they owned prior to buying the puppies. Ex: The fruit tree in the orchard are the biological assets. Once it begins producing the fruit its Agricultural produce and then once it begins harvesting to sell in their store, its inventory.produce and then once it begins harvesting to sell in their store, its inventory.... View Full Document

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