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Agriculture: Bearer Plants (Amendments to IAS 16 and IAS 41) [Completed]

Effective date:  Annual periods beginning on or after January 1, 2016. Earlier adoption permitted.

Transitional provisions:

Annual periods beginning on or after January 1, 2016. Earlier adoption is permitted.

Last updated:

June 2014


IAS 41, Agriculture, previously required all biological assets related to agricultural activity to be measured at fair value less costs to sell. This is based on the principle that the biological transformation that these assets undergo during their lifespan is best reflected by fair value measurement. However, there is a subset of biological assets, known as bearer plants, which are used solely to grow produce over several periods. At the end of their productive lives they are usually scrapped. Once a bearer plant is mature, apart from bearing produce, its biological transformation is no longer significant in generating future economic benefits. The only significant future economic benefits it generates come from the agricultural produce that it creates.

The IASB decided that bearer plants should be accounted for in the same way as property, plant and equipment in IAS 16, Property, Plant and Equipment, because their operation is similar to that of manufacturing. Consequently, the amendments include them within the scope of IAS 16, instead of IAS 41. The produce growing on bearer plants will remain within the scope of IAS 41.

Other developments

June 2014

On June 30, 2014, the IASB published amendments that change the financial reporting for bearer plants, such as grape vines, rubber trees and oil palms.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.