Currently, there is significant diversity in practice regarding the accounting for biological assets. This diversity is causing significant problems for a number of stakeholders – primarily financial statement users.
The project will address issues such as:
- When a biological asset should be recognized;
- How it should be measured on initial recognition;
- How it should be measured in subsequent periods;
- How agricultural produce should be accounted for; and
- What disclosures should be required.
In developing these proposed standards, the AcSB is assisted by an Agriculture Advisory Group whose role is to develop authoritative guidance related to the accounting for biological assets and agricultural produce. Two BC members, David Guthrie CPA CA of KPMG and Denise Parker CPA CGA of MNP, are members of this advisory group. Both also attended the roundtable consultation.
The comment deadline for this exposure draft closes on October 31.
To find out more about the proposed changes, visit the Financial Reporting and Assurance Standards website or contact David Chiang CPA CA, CPABC’s vice-president member advice & programs, for the handouts from the roundtable.