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.
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.