• Service: Audit, IFRS
  • Type: Business and industry issue
  • Date: 6/27/2013

Cost accounting for bearer plants (2013/12) 

This In the Headlines looks at the IASB's response to feedback that the fair value model is not appropriate for measuring bearer plants – e.g. grapevines or palm trees bearing fruit.
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Under the IASB’s proposal, an entity could elect to measure bearer plants at cost. However, the produce growing on bearer plants would continue to be measured at fair value less costs to sell under the standard on agriculture (IAS 41). The proposal would 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.



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