The valuation of biological assets occupies a complex
space at the intersection offinancial reporting, corporate finance,
sustainability, and environmental economics. Biological assets
including livestock, agricultural crops, forestry plantations, and
aquaculture are living systems subject to biological
transformation, environmental dependency, and market uncertainty.
Their valuation is governed primarily by IAS 41, Agriculture, which
requires measurement at fair value less costs to sell, using the
market-based principles defined in IFRS 13,Fair Value Measurement.
It is essential to clarify a frequent source of confusion:
"fair value" in IFRS terminology refers strictly to a
market-based measurement concept and does not imply moral or
ethical fairness. Fair value represents the price that would be
received to sell an asset in an orderly transaction between market
participants at the measurement date. Ethical considerations,
sustainability concerns, and social
