Scope

1

This Standard shall be applied to account for the following when they relate to agricultural activity:

(a) biological assets, except for bearer plants;

(b) agricultural produce at the point of harvest; and

(c) government grants covered by paragraphs 34 and 35.

2

This Standard does not apply to:

(a) land related to agricultural activity (see AASB 116 Property, Plant and Equipment and AASB 140 Investment Property).

(b) bearer plants related to agricultural activity (see AASB 116). However, this Standard applies to the produce on those bearer plants.

(c) government grants related to bearer plants (see AASB 120 Accounting for Government Grants and Disclosure of Government Assistance).

(d) intangible assets related to agricultural activity (see AASB 138 Intangible Assets).

(e) right-of-use assets arising from a lease of land related to agricultural activity (see AASB 16 Leases).

3

This Standard is applied to agricultural produce, which is the harvested produce of the entity’s biological assets, at the point of harvest. Thereafter, AASB 102 Inventories or another applicable Standard is applied. Accordingly, this Standard does not deal with the processing of agricultural produce after harvest; for example, the processing of grapes into wine by a vintner who has grown the grapes. While such processing may be a logical and natural extension of agricultural activity, and the events taking place may bear some similarity to biological transformation, such processing is not included within the definition of agricultural activity in this Standard.

4

The table below provides examples of biological assets, agricultural produce, and products that are the result of processing after harvest:

Biological assets

Agricultural produce

Products that are the result of processing after harvest

Sheep

Wool

Yarn, carpet

Trees in a timber plantation

Felled trees

Logs, lumber

Dairy cattle

Milk

Cheese

Pigs

Carcass

Sausages, cured hams

Cotton plants

Harvested cotton

Thread, clothing

Sugarcane

Harvested cane

Sugar

Tobacco plants

Picked leaves

Cured tobacco

Tea bushes

Picked leaves

Tea

Grape vines

Picked grapes

Wine

Fruit trees

Picked fruit

Processed fruit

Oil palms

Picked fruit

Palm oil

Rubber trees

Harvested latex

Rubber products

Some plants, for example, tea bushes, grape vines, oil palms and rubber trees, usually meet the definition of a bearer plant and are within the scope of AASB 116. However, the produce growing on bearer plants, for example, tea leaves, grapes, oil palm fruit and latex, is within the scope of AASB 141.