International Accounting Standards Board Alters its Work Related Plan
The IASB has released its work related plan after revising it all over again. The board has made 2 simple alterations to the previous plan, which was released on 19th October 2012. The fresh plan does not include the ‘development of strategy’ for the procedure of Agenda Consultation. The plan also throws light on the future projects which are related to the project on ‘bearer biological assets’. As per the plan the International Accounting Standard 41 would be an ED (Exposure Draft) instead of being a paper consisting of discussion.
The explanation provided in the plan with regard to the International Accounting Standard 41 is in line with the discussions held during the September meeting by the International Accounting Standards Board. The board took a decision during the meeting as per which it stated that a discussion related paper isn’t needed in view of the research being carried out in this particular area, which is already underway.
During its September meeting the staff members had proposed that the International Accounting Standards Board should consider adding a project consisting of limitations in terms of scope on International Accounting Standards 41-Agriculture for bearer biological assets to their agenda. The International Accounting Standard 41 is used for measuring the biological assets in relation to agriculture related activity at a value that fairs less for selling. The staff members also gave a presentation based on their analysis before the board stating that some of the commentators raised argument that measurement on the basis of fair value wasn’t correct for the BBAs, especially bearer crops as they are not witnessing any transformation in biological terms anymore.
According to commentators, once the bearer biological assets matured, they did not become growing assets and instead became productive assets and therefore their accounting should be done under the International Accounting Standard 16. The staff members also mentioned before the International Accounting Standards Board that International Accounting Standard 41 should have a particular type of accounting process for both consumable as well as bearable biological assets. The staff members basically hinted towards the fair value based approach. The staff members also made presentations containing feedback received via users as well as agenda consultation.