Amendments of IAS 16 and IAS 41 and the main changes on Agriculture: Bearer Plants
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Word counts: 1103 (excluding reference and appendices) Table of Contents
Part A: Introduction Part B: Amendments of IAS 16 and IAS 41 and the main changes on Agriculture: Bearer Plants.
Part C: Advantages and Disadvantages from the Amendments.
Part D: Treasury Wine Estate and the impact of the Exposure Draft.
Part E: Conclusion.
Part F: Reference List.
Part A: Introduction
IRFS published the Exposure Draft 2013/8 Agriculture: Bearer Plants about the amendments of IAS 16 and IAS 41. The Exposure Draft has changed the definition and accounting standards of Bearer Plants. This report will focus on outline the main changes, the advantages & disadvantage and the impact on Treasury Win Estate Ltd.
Part B: Amendments of IAS 16 and IAS 41 and the main changes on Agriculture: Bearer Plants.
The Bearer Plant definition
The amendment of IAS 16 has changed the definition of biological assets to the class of Property, plant, equipment that is use in an entity’s operation. IRFS Foundation, (2013, p.12 ED) in IAS 41 analyses Bearer Plant is plant that used in agriculture process, could produce at least for one period could not be sold except for scrap sales. The definition for Bearer Plant is now changing from “livestock” to be more “properties” meaning. IAS 41 also adds Agriculture that related to bearer biological assets or also understands as “held only to bear produce” such as grape vines, bushes are accountable in IAS 16 as PPE. On the other hand, IAS 41 biological assets which are livestock that could be consumable such as fish, pigs are considered to be Agriculture Activity. Furthermore, IRFS Foundation, (2013, p.8 ED) highlights that Biological transformation (IAS 41) is defined as the process to growth, production and harvest that make the change in the quality and quantity of the assets. However, when considering the definition of Bearer Plant into Biological assets, it is not similar. The
Student No:
Word counts: 1103 (excluding reference and appendices) Table of Contents
Part A: Introduction Part B: Amendments of IAS 16 and IAS 41 and the main changes on Agriculture: Bearer Plants.
Part C: Advantages and Disadvantages from the Amendments.
Part D: Treasury Wine Estate and the impact of the Exposure Draft.
Part E: Conclusion.
Part F: Reference List.
Part A: Introduction
IRFS published the Exposure Draft 2013/8 Agriculture: Bearer Plants about the amendments of IAS 16 and IAS 41. The Exposure Draft has changed the definition and accounting standards of Bearer Plants. This report will focus on outline the main changes, the advantages & disadvantage and the impact on Treasury Win Estate Ltd.
Part B: Amendments of IAS 16 and IAS 41 and the main changes on Agriculture: Bearer Plants.
The Bearer Plant definition
The amendment of IAS 16 has changed the definition of biological assets to the class of Property, plant, equipment that is use in an entity’s operation. IRFS Foundation, (2013, p.12 ED) in IAS 41 analyses Bearer Plant is plant that used in agriculture process, could produce at least for one period could not be sold except for scrap sales. The definition for Bearer Plant is now changing from “livestock” to be more “properties” meaning. IAS 41 also adds Agriculture that related to bearer biological assets or also understands as “held only to bear produce” such as grape vines, bushes are accountable in IAS 16 as PPE. On the other hand, IAS 41 biological assets which are livestock that could be consumable such as fish, pigs are considered to be Agriculture Activity. Furthermore, IRFS Foundation, (2013, p.8 ED) highlights that Biological transformation (IAS 41) is defined as the process to growth, production and harvest that make the change in the quality and quantity of the assets. However, when considering the definition of Bearer Plant into Biological assets, it is not similar. The