Taking the fair value minus point-of-sale costs as standard, IASB advanced the idea that
the asset’s fair value outbalances the point-of-sale costs. If this idea is rejected, and the point-of-sale costs are higher than the fair value, then the difference between the two is negative.
Whereas the balance sheet does not allow negative values, the biological asset will be
registered in the balance sheet as null – only if the company has no onerous contract. If the
asset comes with an onerous contract, one will needto check for provisions, such as
provisions for imminent losses according to IAS 37 – “Provisions, Contingent Liabilities and
Contingent Assets”.