AASB 2014-6 Amendments to AASB 116 and AASB 141 for bearer plants
Bearer plants are plants which bear produce on a regular basis, for example grape vines, palm oil trees, fruit trees – previously they have been included in the scope of AASB 141 Agriculture and held at fair value.
This standard moves bearer plants into the scope of AASB 116 which provides a measurement choice for the bearer plants at cost or fair value.
Note the agriculture produce, eg. the grapes, fruit etc remain within the scope of the Agriculture standard.
Entities who have bearer plants are no longer required to fair value them if they choose to account for them using the cost model under AASB 116. If this option is chosen then there may be significant changes to the reported position and performance.
No impact for entities who do not hold bearer plants or those entities who will continue to carry bearer plants at fair value.