RESULTS AND DISCUSSIONS
Situations where the fair value cannot be reliably measured
It is assumed that the fair value cannot be reliably measured for a biological asset. This
hypothesis can be ignored only at the initial recognition of a biological asset, for which there
are not available prices or values determined on the market and for which the alternative
estimations of the fair value are not clearly reliable. In these cases, the biological assets will
be evaluated at cost less any cumulated depreciation and any loss from cumulated
depreciation. Once the fair value for such a biological asset can be measured reliably, an
entity will measure it at the fair value less the estimated point-of-sale costs. When an asset
meets the classification conditions as detained for sale according to IFRS 5, it is assumed that
the fair value can be reliably measured. In all cases, an entity measures the agriculture
products at the date of harvest at the fair value less the estimated at point-of-sale costs,
reflecting in this way the idea that the agriculture products measured at the date of harvest can
be always measured reliably. A government unconditional grant is relation to an measured
biological asset at the fair value less the estimated point-of-sale costs will be recognized as
income when and only when the government grant becomes debt. When a government grant
in relation to a biological asset measured at the fair value less the estimated point-of-sale costs
is conditional, including also the case when this government grant is conditioned by the no nengagement
in the specified agriculture activities, an entity will recognize the grant as income
when and only when the imposed conditions for the receiving the grant are fulfilled.