INTRODUCTION
Agriculture is one of the oldest human activities and has an important role in global economy by its generated economic resources. The International Accounting Standard IAS 41
-Agriculture dose not treat problems of agricultural lands and intangible agricultural assets, because these issues are presented in IAS16 standard (or LAS 40), respectively IAS 38. IAS41 does not contain specific information related to how often one should evaluate biological assets, deducing that the evaluation must be conducted on each closing date, because there are on existent regulations to stipulate a less frequent evaluation of biological assets.
The fair value estimation for agricultural produce at the harvesting point is strictly controlled compared to biological assets (according to IAS 41). Therefore, harvested cereal, animal sacrifice, picked fruits will be estimated; the estimation at production costs, due to exceptional circumstances, is not possible, as compared to biological assets. IASB states its premises, which states that there is an active market and a suited price for agricultural produce. Therefore, for agricultural harvested produce held as inventories, the fair value (minus point of sale costs) is actually the initial value correspondent to the acquisition costs or production costs (according to IAS 20).