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Meeting Summaries and Agenda Papers

Meeting Summaries and Agenda Papers


 IASB February 2013


 

At this meeting the IASB discussed the remaining issues in the limited scope project on bearer biological assets (BBAs).

Requirements for the bare BBAs (ie not including the produce growing on the BBAs)
 
The IASB tentatively decided that the recognition requirements of IAS 16 Property, Plant and Equipment (covering unit of measure, initial costs and subsequent costs) could be applied to BBAs without modification. All IASB members agreed with this decision. A few IASB members highlighted areas where additional clarification might be useful for BBAs and the staff will consider those areas during drafting.

The IASB tentatively decided that the disclosure requirements of IAS 16 could be applied to BBAs without modification. The IASB also tentatively decided to ask a question in the Exposure Draft seeking feedback on whether the following disclosures are important to investors:

  1. disclosures about the fair values of the BBAs (including assumptions and inputs used);
  2. disclosures about the significant inputs that would be required to determine the fair value of BBAs (but without the need to disclose the fair value of the BBAs); and
  3. other disclosures about productivity, for example age profile, estimates of the physical quantities of BBAs and output of agricultural produce etc.
    All IASB members agreed with this decision.

 The IASB made the following tentative decisions:

  1. The revaluation model should be permitted for BBAs. All IASB members agreed with this decision.
  2. BBAs should be included within the scope of IAS 16, rather than adding requirements to IAS 41 Agriculture. Ten IASB members agreed with this decision.

Requirements for the produce growing on the BBAs

The IASB made the following tentative decisions:

  1. The reliability exception in IAS 41.30 should not be modified for produce growing on BBAs. Twelve IASB members agreed with this decision.
  2. The produce should remain in the scope of IAS 41. All IASB members agreed with this decision.

Transition requirements

 The IASB made the following tentative decisions:

  1. The amendments to IAS 16 should permit use of fair value as deemed cost for items of BBAs at the start of the earliest comparative period presented in the financial statements to avoid the need to reconstruct cost information. All IASB members agreed with this decision.
  2. The amendments to IAS 16 and IAS 41 should be available for early adoption. All IASB members agreed with this decision.
  3. The deemed cost exemptions provided for PPE in IFRS 1 First-time Adoption of International Financial Reporting Standards should also be available for items of BBAs. All IASB members agreed with this decision.

Next steps

The IASB has now completed discussing the main issues in the limited scope project on bearer biological assets. The next step will be for the IASB staff to present to the IASB and the Due Process Oversight Committee a summary of the due process steps undertaken, before preparing an Exposure Draft of proposed amendments to IAS 16 and IAS 41.

 

 

Date: 2/22/2013