Taking the fair value minus point-of-sale costs as standard, IASB advanced the idea that
the asset’s fair value out balances 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 need to check for provisions, such as provisions for imminent losses according to IAS 37 – “Provisions, Contingent Liabilities and Contingent Assets”. The entity must present distinctively the biological assets in its balance sheet, and must indicate the global result of its biological assets during the current period. Furthermore, the entity must present for each biological activity group, the following: description of the group, active quantities at the closure and harvests obtained during the current period, as well as fair value indicators.