QUESTION THREE (15MARKS) a) In the context of IAS 41 (Agriculture), explain 6the meaning of the following terms: (2marks) i. Biological transformation (2marks) ii. Agricultural activity

i. Biological transformation: In the context of IAS 41 (Agriculture), biological transformation refers to the process by which living organisms, such as plants or animals, undergo changes in their biological composition or structure. This transformation is a result of natural processes, such as growth, development, or reproduction, and it is not caused by human intervention. Biological transformation is an essential aspect of agriculture, as it determines the characteristics and quality of agricultural products.<br /><br />ii. Agricultural activity: In the context of IAS 41 (Agriculture), agricultural activity refers to the activities that are carried out with the intention of cultivating or managing biological assets, such as crops, livestock, or other agricultural products. Agricultural activity includes a wide range of activities, such as planting, watering, harvesting, breeding, and caring for animals. Agricultural activity is a key component of the agricultural industry and is essential for the production of food and other agricultural products.