International accounting standard IAS 41 requires biological assets to be measured at fair value on balance sheets. That is done in Norway, a big fish producer. The inventory of fish is recorded on the balance sheet at fair value with the change in fair value in a period recorded in the income statement. Accordingly, a recent paper finds that Norwegian analysts strip out the number from income statements as “noise.” And appropriately so.
One has to question the fair valuing of fish and recognizing added value as they mature. They have to grow, harvested, and processed and be sold at a variable price before value is realized.
The paper: K. Knivsflå and B. Møller. Fair Value Measurement of Farmed Fish. At https://ssrn.com/abstract=4865186.