Agriculture – Agriculture Advisory Group

Jun 21, 2017

At its meeting on June 21, 2017, the Agriculture Advisory Group discussed: (i) whether guidance on agriculture should include specific guidance on the unit of account for productive biological assets, and whether such guidance would reduce the complexity associated with determining cost; (ii) current practice regarding the recognition and measurement of unborn animals, and whether unborn animals would be considered agricultural inventories or productive biological assets under the Board’s current proposals; (iii) the Board’s preliminary view in its Discussion Paper, “Agriculture” that the presentation requirements for agricultural producers should be determined by the current guidance in Section 1510, Current Assets and Current Liabilities; (iv) the Board’s preliminary view in its Discussion Paper that impairment for agricultural inventories and productive biological assets should be assessed under the models used for current and long-lived assets; the Board’s preliminary views in its Discussion Paper on disclosure requirements, including stakeholder feedback. Group members were concerned with the proposed requirement for an agricultural producer to disclose the aggregate gain or loss arising during the current period from a change in current value. They said that it was not clear whether this would include gains or losses resulting from a change in quantity; and (v) provided feedback on the current diversity in practice concerning the income statement presentation of unrealized gains on agricultural inventories and productive biological assets, noting that a lack of guidance has resulted in many different approaches.