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Exposure Draft: Agriculture: Bearer Plants issued by IASB (Proposed amendments to IAS 16 IAS 41) (Last date for sending comments: September 27, 2013)
July, 09th 2013

The Asian-Oceanian Standard-Setters Group (AOSSG) is a grouping of the accounting standard-setters in the Asian-Oceanian region. The group has been formed to discuss issues and share experiences on the adoption of International Financial Reporting Standards (IFRS) and to contribute to the development of a high-quality set of global accounting standards. The AOSSG set up a Working Group (WG) under the chairmanship of India with co-chair as Malysia to suggest amendments in IAS-41 to address the concern about determining the fair values of various agricultural assets for consideration of International Accounting Standards Board (IASB). The AOSSG WG had submitted its recommendations to the IASB for limited amendments to IAS-41 that Bearer Biological assets should be scoped out of IAS 41, Agriculture and should be scoped in IAS 16, Property, Plant and Equipment as their nature is similar to plant and machinery and accordingly cost model can be applied. 

The IASB has supported this proposal and on 26 June 2013 it published for public comment an Exposure Draft of proposals to include bearer plants within the scope of IAS 16 Property, Plant and Equipment.

The International Accounting Standards Board (IASB) has published this Exposure Draft of proposed amendments to IAS 16 Property, Plant and Equipment and IAS 41 Agriculture to include bearer plants within the scope of IAS 16. The Exposure Draft proposes to account for bearer plants like property, plant and equipment in accordance with the requirements in IAS 16, rather than in accordance with IAS 41. 

Invitation to comment

ASB invites comments on the Exposure Draft from the public. The downloadable version of the draft is available at: http://www.ifrs.org/Current-Projects/IASB-Projects/Bearer-biological-assets/Exposure-Draft-June-2013/Documents/ED-Agriculture-Bearer-Plants-June-2013.pdf 

Comments would be most helpful if they indicate the specific paragraph or group of paragraphs to which they relate, contain a clear rationale and, where applicable, provide a suggestion for alternative wording.

Comments should be submitted in writing to the Secretary, Accounting Standards Board, The Institute of Chartered Accountants of India, ICAI Bhawan, Post Box No. 7100, Indraprastha Marg, New Delhi-110002, so as to be received not later than September 27, 2013. Comments can also be sent by e-mail at asb@icai.in

 
 
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