Recognising value in your biological assets
Biological assets like forestry and livestock have always been among the most popular asset classes for global investors. Due to the complexity and diversification of every species of biological assets, it is a challenging exercise for potential investors to evaluate their investment opportunities.Furthermore, according to the International Accounting Standard 41 – Agriculture (“IAS 41”), biological assets (defined as living animals and plants) are required to be recorded as fair value less cost to sell on initial recognition and each reporting date; the gains or losses arising on initial or subsequent measurement of biological assets shall be included in profit and loss for the period in which it arises. Therefore, biological assets valuation may have material affection to a company’s financial statement.
In view of the significance for pre-acquisition valuation and the requirement of valuation for financial reporting, an experienced valuation expert often plays a key role in biological asset investments.
Regional Director, Corporate Appraisal and Advisory
+852 2169 6004
We have experience valuing the following assets: