In November 2019, the Accounting Standards Board (AcSB) issued Section 3041, Agriculture in Part II of the CPA Canada Handbook – Accounting. Section 3041 is a new standard for agricultural producers in accounting for agricultural inventories and productive biological assets. This standard is effective for fiscal years beginning on or after January 1, 2022.
For agricultural inventories, the standard provides an accounting policy choice to measure using either the cost model, or the net realizable value model when certain conditions are met.
If you are an agricultural producer who will be using the net realizable value model to measure your agricultural inventories, read this easy-to-understand resource to support your financial statement preparation process.