[Illustrative Checklist] Disclosure Requirements under Ind AS 41 | Agriculture

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The objective of Ind AS 41, Agriculture, is to prescribe the accounting treatment and disclosures related to agricultural activity. Agricultural activity is the management by an entity of the biological transformation and harvest of biological assets for sale or for conversion into agricultural produce or into additional biological assets. The agricultural activity covers a diverse range of activities; for example, raising livestock, forestry, annual or perennial cropping, cultivating orchards and plantations, floriculture and aquaculture (including fish farming). An entity shall recognise a biological asset or agricultural produce when, and only when, (a) the entity controls the asset as a result of past events; (b) it is probable that future economic benefits associated with the asset will flow to the entity; and (c) the fair value or cost of the asset can be measured reliably.
As per the stipulation of this standard, an entity must comply with the below-mentioned disclosure requirements:

I. Whether aggregate gain or loss arising during the current period on initial recognition of biological assets and agricultural produce has been disclosed

II. Whether aggregate gain or loss arising during the current period from the change in fair value less costs to sell of biological assets has been disclosed

III. Whether the description of each group of biological assets has been given (in the form of a narrative or quantified description)

IV. Whether the quantified description of each group of biological assets has been provided and distinguishing between:

a. Consumable and bearer biological assets

b. Between mature and immature biological assets

V. If not disclosed elsewhere in information published with the financial statements, whether the following has been disclosed:

a. Nature of its activities involving each group of biological assets

b. Non-financial measures or estimates of the physical quantities of:

i. Each group of entity’s biological assets at the end of the period

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