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Meeting Summaries and Agenda Papers


 IASB Update February 2014


 

At this meeting the IASB commenced its redeliberations of the proposals in the Bearer Plants project by discussing the three main issues raised by respondents to Exposure Draft ED/2013/8 Agriculture: Bearer Plants (Proposed amendments to IAS 16 Property, Plant and Equipment and IAS 41 Agriculture).


Agenda Paper 13A: The three main issues raised by respondents to the Exposure Draft (ED)


Scope of the amendments to IAS 16 and IAS 41


The IASB tentatively decided that the amendments should apply only to bearer plants (unchanged from the ED). The IASB also tentatively decided to replace part (c) of the definition of a bearer plant in the ED with the following—‘(c) the likelihood of selling it [the bearer plant] as a living plant or harvesting it as agricultural produce, except for incidental scrap sales, is remote’.


Fifteen IASB members agreed with this decision.


Accounting for the produce growing on the bearer plants


The IASB tentatively decided that produce growing on bearer plants should be accounted for at fair value through profit or loss in accordance with IAS 41 (unchanged from the ED). The IASB also decided that specific guidance on measurement of the fair value of the produce should not be added to IAS 41 or IFRS 13 Fair Value Measurement (unchanged from the ED).


Fifteen IASB members agreed with this decision.


Guidance on applying IAS 16 to bearer plants


The IASB tentatively decided not to add guidance on applying IAS 16.16(b) to bearer plants, ie guidance on when bearer plants are in the location and condition necessary for them to be capable of operating in the manner intended by management. The IASB also tentatively decided not to add any other guidance to IAS 16 to address circumstances specific to bearer plants.


Eleven IASB members agreed with this decision.


The IASB also tentatively decided that because it is not proposing to add additional guidance to IAS 16 specific to bearer
plants, bearer plants should be within the scope of IAS 16 (unchanged from the ED).


Thirteen IASB members agreed with this decision.


Next steps


The IASB will redeliberate the remaining issues raised by respondents on the ED at its next meeting.

 

Date: 2/19/2014