Deloitte comment letter on tentative agenda decision on IAS 41 — Biological assets growing on bearer plants

Published on: 23 May, 2017

We have commented on the IFRS Interpretations Committee's publication in the March 2017 IFRIC Update of the tentative decision not to take onto the Committee's agenda the request for clarification on the fair value measurement of produce growing on bearer plants.

We agree with the IFRS Interpretations Committee's decision not to add this item onto its agenda for the reasons set out in the tentative agenda decision. However, we note that there exist a number of conceptual issues arising from the requirement of IAS 41 to split a single living organism into two units of account. We recognise that addressing such issues is outside the scope of the Interpretation Committee’s activities, but in the absence of clarity the valuation of growing produce on bearer plants will continue to be problematic and diversity in practice will continue. As such, we recommend that the Board consider these issues, as part of the Post-implementation Review of IFRS 13.

Download the full comment letter below.


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.