@deal, biological assets are living plants or animals which are able to produce agricultural produce at the reporting point and which go to the balance sheet as fixed assets/non current assets so a tree is a biological assets and the timber is agricultural produce, a cow is a biological assets the milk is agricultural produce. they are the main factors if you are engaged in agricultural activity. the profit of an agricultural enterprise depends on the management efficiency of these assets.
Calculating biological assets is complicated because unlike the usual company you can't use historical cost so you have to use fair value less cost to sell. Question is how do you value a tea bush or a coffee plant, it could wilt, die of disease etc and how does the auditor confirm those biological assets. that's where the vodoo accounting comes in.
I hope that helps otherwise i failed the exams after i got tired of reading