IAS 41 prescribes principle for recognition and measurement of biological assets and agricultural produce, and accounting of the associated gains and losses that arise as a result. It however does neither apply to the processing and eventual sale of agricultural produce after the point of harvest nor the sale of biological assets.
In its November 2010 meeting, the Interpretations Committee noted that the Illustrative Example of IAS 41 is not meant to depict all of the disclosures that might be required to in a complete set of financial statements, and that such fact is already stated in the introduction to Example 1. The Interpretations Committee noted that this issue may be considered in the future, if the Board decides to undertake a review of all Illustrative Examples within IFRSs.
Consequently, the Committee decided to propose that the Board should not add this issue to Annual Improvements.
In its May 2011 meeting, the IASB agreed that the issue did not meet the criteria for inclusion in Annual Improvements.