At the AcSOC meeting on March 1-2, 2018, the AcSB Chair noted that, in December 2017, the AcSB completed its deliberations to develop its proposed new standard on agriculture. After reviewing and providing feedback on a preliminary draft of the new Section, the AcSB directed the staff to arrange a fatal-flaw review and a field test of the proposed standard. Twelve participants are assessing how the proposed standard applies to eight different agricultural sectors.

The Board will consider this feedback in March 2018 and plans to issue an exposure draft no later than September 2018. Ms. Mezon also noted that the proposals require inventory to be measured at cost, unless it meets certain conditions for net realizable value. She commented that the AcSB considered the accounting for cannabis in developing the proposed standard, but has not referred specifically to that product in the standard. She said that fair values for cannabis are subjective, owing to the absence of a developed commodity market. Stakeholders are considering how to apply IAS 41 Agriculture, and the AcSB is monitoring developments on accounting for cannabis.

A few members commented that the accounting for cannabis was similar to the accounting for other agricultural products that take a lengthy time to come to market.

Review the meeting summary on the AcSOC's Web site.