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Amendments to the IAS 41 and IAS 16 - implications for accounting of bearer plants

Author

Listed:
  • Saverio BOZZOLAN

    (Accounting, Department of Business and Management, LUISS University, Rome, Italy)

  • Enrico LAGHI

    (Accounting and Business Administration, Department of Law and Economics of Productive Activities - DEAP, University of Rome, Rome, Italy)

  • Marco MATTEI

    (Accounting and Business Administration, Department of Law and Economics of Productive Activities - DEAP, University of Rome, Rome, Italy)

Abstract

Under the IAS-IFRS standards, agricultural activity is accounted for using a fair value model. In 2014, the IASB amended the accounting treatment for bearer plants with the aim to address some concerns that have emerged since the application of the IAS 41. The amendments require that bearer plants be accounted for like property, plant and equipment (IAS 16). In the paper, there are analysed the aspects introduced by these amendments, moving from the IASB project. In particular, the reasons that led to these amendments are explained and it is explored whether all the concerns previously identified by accounting scholars and practitioners have been addressed. Moreover, there are identified some possible obstacles to the practical application of the amendments to the IAS 41.

Suggested Citation

  • Saverio BOZZOLAN & Enrico LAGHI & Marco MATTEI, 2016. "Amendments to the IAS 41 and IAS 16 - implications for accounting of bearer plants," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 62(4), pages 160-166.
    • Handle: RePEc:caa:jnlage:v:62:y:2016:i:4:id:48-2015-agricecon
    DOI: 10.17221/48/2015-AGRICECON
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    References listed on IDEAS

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    1. Carlin Dowling & Professor.Jayne Godfrey, 2001. "AASB 1037 Sows the Seeds of Change: A Survey of SGARA Measurement Methods," Australian Accounting Review, CPA Australia, vol. 11(23), pages 45-51, March.
    2. Liliana FELEAGĂ & Niculae FELEAGĂ & Vasile RĂILEANU, 2012. "Theoretical considerations about implementation of IAS 41 in Romania," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(2(567)), pages 31-38, February.
    3. Hana BOHUŠOVÁ & Patrik SVOBODA & Danuše NERUDOVÁ, 2012. "Biological assets reporting: Is the increase in value caused by the biological transformation revenue?," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 58(11), pages 520-532.
    4. Viorel Lefter & Aureliana Geta Roman, 2007. "IAS 41 Agriculture: Fair Value Accounting," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 5(5(510)), pages 15-22, May.
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