The nature of farming makes an historical-based valuation of biological
assets inherently difficult because they are affected by procreation, growth, death, as
well as typical problems, usually exceeded in agriculture, of joint-cost situations. This
complexity is a specially acute problem for small family households. Kroll (1987) and
Lewis and Jones (1980) concluded that historical costs are not very informative to users,
and allocations to assets are arbitrary in most cases. The American Institute of Certified
Public Accountants (1996) and the Canadian Institute of Chartered Accountants (1986)
recommended the historic cost, considering alsothe possibility of realizable value as an
alternative. The French PGCA adhered also to the historiccost principle. However,
Kroll (1987) regretted that the complexity in asset valuation and accounts was an
important barrier to its use inpractice. Elad (2004) points out that simplicity is not a
merit of fair value where does not exist an active market for a biological asset. Argilés
and Slof (2001) stated that IAS 41 conceptual’s framework has already been in fact