LKAS 41 Agriculture Amendment – – IASB has made a limited change to the IAS 41 (Equivalent LKAS 41), as per the changes following considerations were bought into the standard Definition for the bearer plant in the previous version of LKAS 41 has only defined – biological assets and the current standard has clearly defined the bearer plant. Further the bearer plant related to agricultural activity has scoped out from the current standards. The definition for the bearer plant is as follows, bearer plant is a living plant that: “A (a) is used in the production or supply of agricultural produce; (b) is expected to bear produce for more than one period; and (c) has a remote likelihood of being sold as agricultural produce, except for incidental scrap sales.” Accounting treatment the bearer plant which meets the recognition criteria under LKAS – 16, will be measured at cost or revalued amount and will be subject to depreciation as well. Examples of bearer plants are, Tea bushes Rubber trees Grape vines Oil palm Agricultural Produce shall be measured at fair value less cost to sell. – Effective date the amendment is applicable for the period on or after 1st January 2016. – For the preparation of 31st December accounts the impact it will be reflecting in 31st December 2016 and for the 31st March it will be reflecting in 31st March 2017.
LKAS 41 – Agriculture – Amendment IASB has made a limited change to the IAS 41 (Equivalent LKAS 41), as per the changes following considerations were bought into the standard Definition for the bearer plant – in the previous version of LKAS 41 has only defined biological assets and the current standard has clearly defined the bearer plant. Further the bearer plant related to agricultural activity has scoped out from the current standards. The definition for the bearer plant is as follows, “A bearer plant is a living plant that: (a) is used in the production or supply of agricultural produce; (b) is expected to bear produce for more than one period; and (c) has a remote likelihood of being sold as agricultural produce, except for incidental scrap sales.” Accounting treatment – the bearer plant which meets the recognition criteria under LKAS 16, will be measured at cost or revalued amount and will be subject to depreciation as well. Examples of bearer plants are, Tea bushes Rubber trees Grape vines Oil palm Agricultural Produce – shall be measured at fair value less cost to sell. Effective date – the amendment is applicable for the period on or after 1st January 2016. For the preparation of 31st December accounts the impact it will be reflecting in 31st December 2016 and for the 31st March it will be reflecting in 31st March 2017.