05-20-2011, 04:27 AM
I did not say the tree would be recognised as Property, Plant or equipment. I just said it CAN be recognised as an asset if the definition of asset is met.
IAS 41 paragraph 10 states "An entity should recognise a biological asset or agriculture produce only when the entity controls the asset as a result of past events, it is probable that future economic benefits will flow to the entity, and the fair value or cost of the asset can be measured reliably". This is the definition of asset provided in the framework.
IAS 41 paragraph 10 states "An entity should recognise a biological asset or agriculture produce only when the entity controls the asset as a result of past events, it is probable that future economic benefits will flow to the entity, and the fair value or cost of the asset can be measured reliably". This is the definition of asset provided in the framework.
