IAS 41 prescribes, among other things, the accounting treatment for biological assets during the period of
growth, degeneration, production, and procreation, and for the initial measurement of agricultural produce at
the point of harvest. It requires measurement at fair value less costs to sell from initial recognition of biological
assets up to the point of harvest, other than when fair value cannot be measured reliably on initial recognition.
This Standard is applied to agricultural produce, which is the harvested product of the entity’s biological
assets, only at the point of harvest. Thereafter, IAS 2 Inventories or another applicable Standard is applied.
Accordingly, this Standard does not deal with the processing of agricultural produce after harvest; for example,
the processing of grapes into wine by a vintner who has grown the grapes.