Answer :
Final answer:
Under AASB 141 Agriculture, increases and decreases in value of biological assets measured at fair value less costs to sell are recorded in profit or loss as they arise, due to physical changes or price changes.
Explanation:
According to the AASB 141 Agriculture, increases and decreases in value are accounted for differently based on whether they are due to physical changes or price changes. For biological assets measured at fair value less costs to sell, gains and losses from changes in fair value are included in profit or loss in the period in which they arise. Increases in value that are attributable to physical changes, such as the growth of livestock or crops, are recorded as gains. Conversely, decreases in value due to physical deterioration or damage are recorded as losses. When price changes occur, they are also recorded directly in profit or loss. This standard requires a clear disclosure of the amount attributable to each factor affecting the change in fair value.
