Abstract: Supporting the measurement based on the fair value invokes a series of reasons that
conclude that the fair value, as a method of measurement of the future economic benefits that is expected to be
generated by the biological assets, has a greater relevance, reliability, comparability and intelligibility that the
historic cost, and it is for this reason that we find more biological assets on active markets with clear market
prices. The active markets for such goods supply a reliable measure of the market expectation as far as the
future economic benefits are concerned. The presence of such prices increases significantly the reliability of the
market value, as indicator of the fair value. The measurement of the biological assets cost is sometimes less
reliable than the measurement of the fair value, because the coupled products and the coupled costs can generate
situations where the relationship between inputs and outputs is incorrectly defined, leading to complex and
arbitrary cost allocations even if the biological assets generate supplementary biological assets, and the latter are
used for the agriculture activity characteristic to the entity. The International Accounting Standard IAS 41 –
Agriculture prescribes accounting treatment, financial sheet drawing and information related to biological assets
and agricultural activities from the harvesting point.