EFRAG draft comment letter on bearer plants

  • EFRAG (European Financial Reporting Advisory Group) (dk green) Image

17 Jul 2013

The European Financial Reporting Advisory Group (EFRAG) has issued a draft comment letter on the IASB's Exposure Draft ED/2013/8 'Agriculture: Bearer Plants (proposed Amendments to IAS 16 and IAS 41)' that was published on 26 June 2013.

In the draft comment letter, EFRAG agrees with the IASB that bearer plants should be accounted for under the cost model or the revaluation model of IAS 16. However, the EFRAG suggests the following issues for reconsideration:

  • The “IASB should consider broadening the scope of the amendments as this could improve the quality of financial reporting by better reflecting the business model of entities";
  • The “growing phase of different bearer plants may differ significantly and therefore recommends, as a practical expedient, to define the maturity date as the date of the first harvest of commercial value"; and
  • The “disclosures required by IAS 16 are appropriate for bearer plants and believes that disclosures of non-financial information should not be required in the financial statements.”

Comments on the draft letter are invited by 14 October 2013.

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