HKAS 41 and IAS 41, in Hong Kong Accounting Standard and International Accounting Standard specify the detailed treatment of biological asset. Treatment of biological asset in both set of rules which is different from other asset classes is that biological asset shall be measured on initial recognition and at the end of each reporting period at its fair value less costs to sell, unless market-determined prices or values are not available and for which alternative estimates of fair value are determined to be clearly unreliable. A gain or loss arising on initial recognition of a biological asset and agricultural produce at fair value less costs to sell and from a change in fair value less costs to sell of a biological asset and agricultural produce shall be included in profit or loss for the period in which it arises.