The Accounting Standards Board while formulating Indian Accounting Standards (Ind ASs) in 2011 did not formulate the Ind AS corresponding to IAS 41, Agriculture, as it was felt by certain stakeholders that IAS 41 is not suitable to the Indian conditions because it is based on determining fair values of various agricultural assets such as orchards, plantations and other such assets.

In the meanwhile, the Asia-Oceanic Standards-Setters Group (AOSSG) considering that other countries, such as Malaysia, also having similar concerns constituted a Working Group under the Chairmanship of India, with Malaysia as co-chair,  to suggest limited scope amendments to IAS 41 for consideration of IASB so that the principal concerns are addressed at an early date.

Further, the Board considered the Approach Paper on Accounting for Agriculture: Alternative Approaches for Revision of IAS 41 and felt that Alternative 2: Hybrid Assets Model should be adopted. ASB, issued an Exposure Draft in September 2011 with last date of sending comments November 15, 2011 which proposed that biological assets should be classified first into flora and fauna and thereafter only flora (plants) should be classified into Bearer Biological Assets (BBA) and accounted for in accordance with Ind AS 16, Property, Plant and Equipment and Consumable Biological Assets (CBA) and fauna (animals) should continue to be valued at fair value as per IAS 41. that .

The IASB on the basis of the recommendations made by the AOSSG Working Group, issued the amendments to IAS 41, Agriculture: Bearer Plants on the lines of approach suggested in the Exposure Draft issued by the ASB.

The Accounting Standards Board considered the amendments to IAS 41 Agriculture: Bearer Plants (Amendments to IAS 16 and IAS 41) and finalised the following Exposure Draft of Ind AS 41, Agriculture on the basis of the revised IAS 41.

The Board invites comments on any specific aspect of the Exposure Draft. Comments are most helpful if they indicate the specific paragraph or group of paragraphs to which they relate, contain a clear rationale and, where applicable, provide a suggestion for alternative wording.

How to comment

Comments should be submitted using one of the following methods:

1.       Electronically:    Click on the below mentioned option to submit a comment letter or Visit at the following link

                                       http://www.icai.org/comments/asb/  

1.       Email:             comments can be sent to: commentsasb@icai.in

1.       Postal:            Secretary, Accounting Standards Board,

                                      The Institute of Chartered Accountants of India,

                                      ICAI Bhawan, Post Box No. 7100,

                                      Indraprastha Marg, New Delhi 110 002

Further clarifications on this standard amendment may be sought by e-mail to achin.poddar@icai.in