Bearer Biological Assets (Amend IAS 41)

BACKGROUND

The Accounting Standards Board (AcSB) is participating in the International Accounting Standards Board’s (IASB) limited-scope improvement to IAS 41 Agriculture in respect of bearer biological assets.

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IAS 41 provides guidance on the accounting for agricultural activity; it currently requires measurement of all biological assets at fair value. IAS 41 distinguishes between consumable and bearer biological assets. Many stakeholders suggest that bearer biological assets, particularly plants, are similar to plant, property and equipment and, accordingly, they should be accounted for under IAS 16 Property, Plant and Equipment. This project will focus on measurement of bearer biological assets that are plants. 

The AcSB participates in the activities of the project to ensure that Canadian entities’ financial reporting needs are considered by the IASB. The amendments will be incorporated into Canadian GAAP in accordance with the AcSB’s strategy of adopting International Financial Reporting Standards (IFRSs) for publicly accountable enterprises. 

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PROJECT NEWS

Final Amendments – Agriculture: Bearer Plants
July 8, 2014. The IASB has issued narrow-scope amendments to IAS 16 Property, Plant and Equipment and IAS 41 Agriculture to address the accounting for bearer plants. The amendments are effective for annual periods beginning on or after January 1, 2016 with earlier application permitted. 

AcSB Response – Agriculture: Bearer Plants
On October 28, 2013, the AcSB submitted a comment letter responding to the IASB’s Exposure Draft issued in June 2013.  The letter supports the efforts to improve the accounting for bearer biological assets.  The letter recommends that the scope of the proposed amendments be expanded and provides some other input to enhance the quality of the amendments. Read the AcSB letter posted by the IASB.

AcSB Exposure Draft – Agriculture: Bearer Plants (Proposed amendments to IAS 16 and IAS 41)
July 12, 2013. The AcSB has issued an Exposure Draft that corresponds to the IASB’s Exposure Draft on this topic.  Stakeholders are encouraged to submit their comments, on the form provided, by October 28, 2013

IASB Exposure Draft – Agriculture: Bearer Plants (Proposed amendments to IAS 16 and IAS 41)
July 4, 2013. The IASB has issued an Exposure Draft proposing amendments to IAS 16 Property, Plant and Equipment and IAS 41 Agriculture.  Canadian stakeholders are encouraged to submit their comments to the IASB by October 28, 2013.

 

Disclaimer: This project summary has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on this project, which may change after further Board deliberations. Decisions to publish Handbook material are final only after a formal ballot process.