How would you account for "bearer plants"? Would you account it following IAS 16 (Property, plant, and equipment) or IAS 41 (Agriculture)?

Hi Marry Grace,

Please refer the attached issue from EY: Issue 84/ July 2014 - Bearer Plants - New Requirement.

As per the issue, the Bearer plants to be account as per IAS 16-PPE when certain conditions are fulfilled. Please refer the below link for the same.

http://www.ey.com/Publication/vwLUAssets/IFRS_Developments_Issue_84:_Bearer_plants_-_the_new_requirements/$FILE/Devel84-Agriculture-July2014.pdf

Thanks

As per the amended requirements of IASB, Bearer plants were included within the scope of IAS 16, effective from 2016. 

The wording used in IAS 41 clearly mentioned that its applies to biological assets with the exception of bearer plants; and bearer plants include a living plant that used in the production of supply of agriculture produce.

However, if an assets qualify under bearer assets, it should be treated according to IAS 41.