IAS 41 — Fair value measurement issues in agriculture


IAS 41 Agriculture requires biological assets and agricultural produce be recognised and measured at their fair value. In some cases, a present value technique is used to estimate fair value because markets do not exist. IAS 41 requires that the cash flows exclude "any increases in value from additional biological transformation". The issue initially addressed in this project is whether a fair value measurement objective can be achieved if these future increases are excluded. The project was later broadened to address recognition and measurement issues under IAS 41.


Current status of the project

IFRIC removed this topic from its agenda in 2007, in favour of recommending to the IASB that the matters considered be included in the annual improvements process.  Amendments to IAS 41 were proposed and made in the 2006-2008 cycle of annual improvements.


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.