Page 4 - 8. COMPILER QB - INDAS 41
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assets.
Development of living Analysis The development of living organism for research
organisms such as cells, required purposes does not qualify as agriculture activity, as
bacteria viruses those organisms are not being developed for scale, or for
conversion into agricultural produce or into additional
biological assets. Hence, development of such organisms
for the said purposes does not fall under the scope of
Ind AS 41.
However, if the organisms are being developed for sale
or use in dairy products, the activity will be considered
as agricultural activity under the scope of Ind AS 41
Growing of plants to be Yes If an entity grows plants for using it in production of
used in the production of drugs, the activity will be agricultural activity. Hence it
drugs will come under the scope of Ind AS 41.
Purchase of 25 dogs for No Ind AS 41 is applied to account for the biological assets
security purposes of the when they relate to agricultural activity.
company’s Premises. Guard dogs for security purposes do not qualify as
agricultural activity, since they are not being kept for
sale, or for conversion into agricultural produce or into
additional biological assets. Hence, they are outside the
scope of Ind AS 41
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