182 Government Finance Statistics Manual 2014
Cultivated biological resources (61131)
7.59 Cultivated biological resources (61131) cover
animal resources yielding repeat products and tree,
crop, and plant resources yielding repeat products
whose natural growth and regeneration are under the
direct control, responsibility, and management of in-
stitutional units.
7.60 Animal resources yielding repeat products
(611311) include breeding stocks, dairy cattle, draft
animals, sheep, or other animals used for wool pro-
duction, animals used for transportation, racing, or
entertainment, and aquatic resources yielding repeat
products. Immature cultivated assets are excluded
unless produced for own use. Animals raised for
slaughter, including poultry, are not fi xed assets but
inventories.
7.61 Tree, crop, and plant resources yielding repeat
products (611312) include trees (including vines and
shrubs) cultivated for fruits and nuts, for sap and
resin, and for bark and leaf products. Trees grown for
timber that yield a fi nished product once only when
they are ultimately felled are not fi xed assets, but are
included as inventories, just as grains or vegetables
that produce only a single crop when they are har-
vested cannot be fi xed assets.
7.62 In general, when the production of fi xed as-
sets takes a long time to complete, those assets for
which production is not yet completed at the end of
the reporting period are recorded as inventories in
the form of work in progress. Th ese general principlesalso apply to the production of cultivated assets, such
as animals or trees that may take a long time to reach
maturity. Two cases need to be distinguished from
each other: the production of cultivated products by
specialized producers, such as breeders or tree nurs-
eries, and the own-account production of cultivated
assets by their users:- In the case of the specialist producers, animals or
trees whose production is not yet complete and
are not ready for sale or delivery are recorded as
work in progress. - However, when animals or trees intended to be
used as fi xed assets are produced on own account
on farms or elsewhere, incomplete assets in the
form of immature animals, trees, etc. not ready to
be used in production are treated as the acquisi-
tion of fi xed assets by the producing public sector
unit in its capacity as eventual user and not as
work in progress.
7.63 Only animals and plants cultivated under the
direct control, responsibility, and management of insti-
tutional units are cultivated assets or inventories. Oth-
erwise, they are nonproduced assets. Animals classifi ed
as cultivated biological resources usually can be valued
on the basis of the current market prices for similar
animals of a given age. Such information is less likely
to be available for plants; more likely they will have to
be valued at the written-down replacement cost.
Intellectual property products (61132)
7.64 Intellectual property products (61132) are
the result of research, development, investigation, or
innovation leading to knowledge that the developers
can market or use to their own benefi t in production
because use of the knowledge is restricted by means of
legal or other protection. Th e knowledge may be em-
bodied in a free-standing product or may be embod-
ied in another product. When the latter is the case, the
product embodying the knowledge has an increased
price relative to a similar product without this embod-
ied knowledge. Th e knowledge remains an asset as long
as its use can create some form of monopoly profi ts for
its owner. When it is no longer protected or becomes
outdated by later developments, it ceases to be an asset.
Intellectual property products can be classifi ed as:- Research and development (611321)
- Mineral exploration and evaluation (611322)
Table 7.5 Classifi cation of Other Fixed Assets
6113 Other fi xed assets
61131 Cultivated biological resources
611311 Animal resources yielding repeat
products
611312 Tree, crop, and plant resources yielding
repeat products
61132 Intellectual property products
611321 Research and development
611322 Mineral exploration and evaluation
611323 Computer software and databases
6113231 Computer software
6113232 Databases
611324 Entertainment, literary, and artistic
originals
611325 Other intellectual property products