Is the offspring of a biological asset accounted for in accordance with GRAP 27 on Agriculture or GRAP 12 on Inventories?

The Public Sector Accounting Forum (PSAF) considered the accounting treatment of the offspring of a biological asset where they are held for sale. GRAP 27 is applied up to the point of harvest, thereafter GRAP 12 is applied. According to GRAP 27, “harvest” is the detachment of produce from a biological asset or the cessation of a biological asset’s life processes.

The PSAF noted that determining the point of harvest is specific to each entity. An entity’s accounting policy should explain how it has made this assessment.