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IAS 41 — Biological assets growing on bearer plants

Date recorded:


In March 2017, the IC discussed whether there are circumstances in which an entity cannot reliably measure the fair value of growing produce. In particular, the issue centred on whether fruit growing on oil palms could be considered to be an example of a biological asset for which an entity might rebut the fair value presumption set out in IAS 41.30.  The IC concluded that its role is not to address specific application questions, particularly when the question relates to the application of the judgements required in applying the Standards. Accordingly, the IC decided not to take the issue onto its agenda.

Staff analysis of comment letters received

Four comment letters were received, in which all the respondents agreed with the IC’s decision. Apart from a suggestion to the Board to consider the valuation challenges in relation to biological assets as part of its post-implementation review (PIR) of IFRS 13 (which is a specific area on which the Board is currently seeking feedback via the Request for Information as part of the IFRS 13 PIR) and some drafting issues, no significant comments were received.

Staff recommendation

The Staff recommend that the IC finalise the agenda decision, subject to drafting changes.


The IC approved the Staff recommendation without any discussion.

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