Question

Explain how the concept of 'biological asset' is different from 'bearer plant'. Give one example to clarify your answer.

Answer 1

Biological asset:

• Biological Assets are living assets of any business such as trees , plants and animals.

For examples

• bearer plants such as Mango trees , non bearer plants such as agricultural produce , Living stock such as sheep, goat.

Bearer plant :

• Bearer plant is also included in definition of biological asset.
• a plant which can not be itself sold as a produce , ( except for scrap ), is called a bearer plant.

for example :

• Mango Tree is a bearer plant, because mango can be sold as a product, which is a product of this plant.
• but the plant itself is not sold as product, except for scrap after the end of its productive life.

thus a biological asset to be called a bearer plant must fulfil following conditions:

• it must be used to produce agricutural produce.
• it should be used for more than 1 year
• it should not itself be sold as agricultural produce.

for example ,

• a mango tree and a mango , both will be falling in scope of  biological asset .
• but only a mango tree is a bearer plant , mango fruit does not fall under the definition of a bearer plant .

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