New accounting for bearer plants costs

(Second of two parts)
IN LAST WEEK’S article we explained how agricultural companies have to account for the costs of bearer plants or the aggregate of planting costs prior to harvest. We also explained how these costs are currently accounted for in the financial statements. However, concerns about accuracy and complexity prompted the International Accounting Standards Board to amend International Accounting Standard (IAS) 16, Plant, Property and Equipment, and IAS 41, Agriculture. Specifically, bearer plants will be accounted for just like any other plant, property and equipment (PPE). We now continue the discussion on the specifics on how IAS 16 will be applied to bearer plants.