IAS 41 sets out the accounting for agricultural activity – the transformation of biological assets (living plants and animals) into agricultural produce (harvested product of the entity's biological assets). The standard generally requires biological assets to be measured at fair value less costs to sell.

Examples of agricultural activity include:

• Raising livestock, fish or poultry
• Stud farms (for example, breeding horses or cattle)
• Forestry
• Cultivating vineyards, orchards or plantations
• Floriculture