An entity shall recognise a biological asset or agricultural produce when, and only when: O a. it is probable that future economic benefits associated with the asset will flow to the entity. • b. the fair value or cost of the asset can be measured reliably. • c. All of these are correct. • d. the entity controls the asset as a result of past events.
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This means that the asset is expected to generate revenue or reduce costs in the future. So, option a is correct. Second, the fair value or cost of the asset must be measurable reliably. This means that the entity can accurately determine the value of the asset, Show more…
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