Biological asset is everything that is born, grows and dies. What is generated by them is considered agricultural product.
The valuation considers the various characteristics of these assets, which may or may not be perennial, have cycles, require food or inputs, allow cuts or extraction and depend on climate, water and the environment.
The economic method is the most used for valuation and the revenues, costs, expenses and risks involved in the operation are analyzed.
It is important to point out that biological assets that we have control over production are subject to corporate accounting recognition, and biological assets found freely in nature, without production control, do not have accounting recognition.
