Abstract. Issuing this standard that had to be applied for the first time for the financial statements started after 1.01.2003 meant a change of direction from two points of view: on one hand, through IAS 41 was issued for the first time an extensive standard typical for this sector and, on the other hand, for the first time were included in the income statement, independently from the sales transactions, incomes from variations of the fair value of an asset. Because of this last aspect, IAS 41 can be considered an important standard, because it represents the starting point of a consistent transition from the purchase cost principle towards a fair value accounting. IASC has dedicated to the thematic field of agriculture a specific standard, because this economic branch has a great importance for the developing countries. On the other hand, IAS 41 is also applied for the agricultural activities of the enterprises from other sectors.

Keywords: agricultural activity; fair value; biological asset; biological transformation; initial recognition.