At its meeting on December 12, 2018, the AcSB discussed two issues recommended by the IFRS Discussion Group, as follows: (i) the accounting for costs incurred related to biological transformation; and (ii) the presentation of changes in fair value less costs to sell under IAS 41 Agriculture. The Board considered the staff’s research on whether entities in other jurisdictions are encountering similar issues in applying the guidance in IAS 41.

The AcSB decided to submit the first issue to the IFRS Interpretations Committee after considering the Committee’s agenda criteria. The submission will ask the Committee to clarify whether IAS 41 intends for costs incurred for the development of biological assets, measured at fair value less costs to sell, to be capitalized or expensed.

The AcSB decided not to submit the second issue. The Board felt that this issue did not meet the Committee’s agenda criteria because it is not sufficiently narrow in scope and cannot be resolved efficiently within the confines of IFRS® Standards. The IASB currently has a project that focuses on improving the structure and content of primary financial statements. The Board will monitor this project for an opportunity to bring forward this presentation issue.

Review the Executive Summary on the AcSB's Web site.