When Your Assets Refuse to Sit Still

Agriculture does not fit neatly into traditional accounting models. Biological assets grow, reproduce, deteriorate, and change value even when nothing is bought or sold. Weather, disease, and time itself all affect value. IAS 41 exists because cost accounting cannot explain this reality. It recognises that when a business manages living assets for economic benefit, growth and risk are part of performance. The challenge is not whether the assets are alive, but whether the numbers tell the truth about what is really happening on the farm.