What is classified as a 'biological asset'?

A biological asset refers to living plants or animals that are harvested or cultivated for agricultural purposes. This classification aligns with financial reporting standards, such as the International Financial Reporting Standards (IFRS), which define biological assets as those that involve agricultural activity.

In agricultural contexts, these assets are significant as they are subject to fluctuations in value based on growth and biological transformation. This includes crops, livestock, and other living entities that can be measured in terms of their contribution to economic activity once they are harvested or sold.

The other options do not meet the criteria for classification as a biological asset. Financial investments in stocks pertain to monetary instruments and do not involve living elements. Manufactured products are considered tangible assets resulting from industrial processes, while intangible assets encompass non-physical assets like patents and trademarks. Thus, only living plants or animals align with the definition of biological assets in financial reporting.