Biological asset
A biological asset is a living animal or plant. Its accounting under IAS 41 depends on the item and applicable exceptions; in an audit, valuation, physical existence and disclosures can require specialised evidence. The auditor evaluates management’s assumptions and any expert’s work where relevant.
Worked example
An auditor observes a sample of livestock and evaluates the data and market assumptions used to measure the herd.
Common mistake
Do not assume all agricultural items are measured identically or that counting an asset proves its valuation.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AAA (INT) | Supporting | September 2026–June 2027 |
| ACCA | FR | Direct | September 2026–June 2027 |
| ACCA | SBR | Direct | September 2026–June 2027 |