The IASB has issued ED/2013/8 Agriculture: Bearer Plants (proposed amendments to IAS 16 and IAS 41) containing proposals to treat bearer plants as property, plant and equipment. Examples of bearer plants are fruit trees, kiwifruit vines and grapevines.
IAS 41 Agriculture requires all biological assets that are related to agricultural activity, including bearer plants, to be measured at fair value less costs to sell. This Exposure Draft proposes that bearer plants are accounted for as property, plant and equipment in accordance with IAS 16 Property, Plant and Equipment instead of the existing treatment under IAS 41, thus permitting the use of either a cost model or a revaluation model. The produce growing on the bearer plants would remain under the fair value model in IAS 41.”
The NZASB is seeking comments from constituents on this development which will have a significant impact in some parts of the agriculture industry.
Click here for the IASB Exposure Draft ED/2013/8
Comments are due to the NZASB by 27 September 2013 and to the IASB by 28 October 2013.
Comments, both formal and informal, can be made to the New Zealand Accounting Standards Board (NZASB) addressed to the Chief Executive, External Reporting Board, PO Box 11250, Manners Street Central, Wellington 6142, or by email to firstname.lastname@example.org. Comments can also be made electronically to the IASB through its website (www.ifrs.org), using the ‘Comment on a proposal’ page located via the ‘Get Involved’ tab The NZASB would appreciate copies of submissions made directly to the IASB.
It would be appreciated if respondents send their comments in electronic form (PDF and Microsoft Word formats) as it allows for efficient collation and analysis of comments. All comments will ultimately be posted on the XRB website unless respondents indicate that they wish their comments to remain confidential.