Under IAS 41 Agriculture, how should a biological asset be measured at each reporting date, assuming fair value can be measured reliably?

Correct answer: C) At fair value less costs to sell, with changes recognised in profit or loss

Explanation

IAS 41 requires biological assets to be measured at fair value less costs to sell, both on initial recognition and at each reporting date. Gains and losses go to profit or loss for the period. Cost less depreciation is used only in the rare case where fair value cannot be measured reliably on initial recognition.