Bearer Biological Assets

In September 2012, the IASB included in its work plan a limited-scope improvement to IAS 41 on the grounds that this standard, under which biological assets are measured at fair value, posed problems in the case of bearer biological assets (grape vines, rubber trees, oil palms, etc.).

Keywords: Mazars, Thailand, Accounting, IFRS, IASB, FASB

14 August 2013

On 26 June 2013, the IASB published its draft on bearer plants, with a call for comments by 28 October.

The draft proposes to account for bearer plants in accordance with IAS 16 (cost less any accumulated impairment losses or at revaluation amount) rather than fair value less costs to sell.

However, the produce growing on the bearer plants (grapes, oil, rubber resin, etc.):

  • would remain within the scope of IAS 41, and
  • would continue to be measured at fair value less costs to sell.

The exposure draft can be consulted on the IASB website.

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