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Details

  • Service: Audit, IFRS
  • Type: Business and industry issue
  • Date: 7/2/2014

Cost accounting for bearer plants 

In response to constituent feedback that the fair value model is not appropriate for measuring bearer plants – e.g. grapevines or palm trees bearing fruit – the IASB has amended its standards on property, plant and equipment and agriculture.

Under the amendments, an entity can elect to measure bearer plants at cost. However, the produce growing on bearer plants will continue to be measured at fair value less costs to sell under the standard on agriculture.


The amendments simplify the measurement of bearer plants and will be welcomed by many companies and investors – particularly in Asia – who consider the current fair value accounting for bearer plants as being subject to too much uncertainty.


The amendments are effective for annual periods beginning on or after 1 January 2016. Early adoption is permitted.

Cost accounting for bearer plants (2014/12)

Feature image
This In the Headlines looks at amendments issued by the IASB in response to constituent feedback that the fair value model is not appropriate.

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