IAS41_06 - IAS 41 International Accounting Standard 41...

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IAS 41 © IASCF 2055 International Accounting Standard 41 Agriculture This version includes amendments resulting from new and amended IFRSs issued up to 31 December 2005.
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IAS 41 2056 © IASCF C ONTENTS paragraphs INTRODUCTION IN1–IN9 INTERNATIONAL ACCOUNTING STANDARD 41 AGRICULTURE OBJECTIVE SCOPE 1–4 DEFINITIONS 5–9 Agriculture-related definitions 5–7 General definitions 8–9 RECOGNITION AND MEASUREMENT 10–33 Gains and losses 26–29 Inability to measure fair value reliably 30–33 GOVERNMENT GRANTS 34–38 DISCLOSURE 40–57 General 40–53 Additional disclosures for biological assets where fair value cannot be measured reliably 54–56 Government grants 57 EFFECTIVE DATE AND TRANSITION 58–59 APPENDIX Illustrative examples BASIS FOR CONCLUSIONS
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IAS 41 © IASCF 2057 International Accounting Standard 41 Agriculture (IAS 41) is set out in paragraphs 1–59. All the paragraphs have equal authority but retain the IASC format of the Standard when it was adopted by the IASB. IAS 41 should be read in the context of its objective and the Basis for Conclusions, the Preface to International Financial Reporting Standards and the Framework for the Preparation and Presentation of Financial Statements . IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors provides a basis for selecting and applying accounting policies in the absence of explicit guidance.
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IAS 41 2058 © IASCF Introduction IN1 IAS 41 prescribes the accounting treatment, financial statement presentation, and disclosures related to agricultural activity, a matter not covered in other Standards. Agricultural activity is the management by an entity of the biological transformation of living animals or plants (biological assets) for sale, into agricultural produce, or into additional biological assets. IN2 IAS 41 prescribes, among other things, the accounting treatment for biological assets during the period of growth, degeneration, production, and procreation, and for the initial measurement of agricultural produce at the point of harvest. It requires measurement at fair value less estimated point-of-sale costs from initial recognition of biological assets up to the point of harvest, other than when fair value cannot be measured reliably on initial recognition. However, IAS 41 does not deal with processing of agricultural produce after harvest; for example, processing grapes into wine and wool into yarn. IN3 There is a presumption that fair value can be measured reliably for a biological asset. However, that presumption can be rebutted only on initial recognition for a biological asset for which market-determined prices or values are not available and for which alternative estimates of fair value are determined to be clearly unreliable. In such a case, IAS 41 requires an entity to measure that biological asset at its cost less any accumulated depreciation and any accumulated impairment losses. Once the fair value of such a biological asset becomes reliably measurable, an entity should measure it at its fair value less estimated
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This note was uploaded on 06/12/2011 for the course ECON 801 taught by Professor Brend during the Summer '11 term at Abu Dhabi University.

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IAS41_06 - IAS 41 International Accounting Standard 41...

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