The fair value, as treated by other accounting standards, is an important element for the economic information users, by presenting the key elements used in its estimation. Calculating the update rate and the evaluation techniques used in determining the volume of agricultural assets, can have significant effects over the fair value estimation. All evaluations influence the profit and lossaccount, and directly influence the revenues and expenses: modifications of the fair value at the year-end and revenues generated by initial evaluations. Therefore, the Consequently, a company should present the assets’ accounting values separately in the annual
financial statements. A company will present the profits or losses of the current period, at the initial
recognition of biological assets and agricultural produce, and from the fair value modification, minus
point-of-sale costs, and describing each group of biological assets separately. Therefore, the company
will need to describe the following: the nature of its activities and each group of biological assets;non-financial measures or quantity estimations for each group of biological assets and agricultural produce
of the current period. The entity will present all significant methods used in determining the fair value
of each group of biological assets and agricultural-produce; fair value determined at the harvesting point minus point-of-sale costs of agricultural assets during the period; the existence and accounting-values of restricted biological assets and accounting values of biological assets that guarantee the debts; the value of the commitments taken for the development or purchase of biological assets;
financial risk management strategies related to agricultural activities; nature and value of government
grants; unfulfilled requirements and other contingencies of government grants; significant reductions
related to government grants.
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