Download Ind AS 41, Agriculture

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Ind AS 41: Agriculture

Objective

The objective of this Standard is to prescribe the accounting treatment and disclosures related to agricultural activity.

Scope

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

(a) biological assets;

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

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

This Standard does not apply to:

(a) land related to agricultural activity (see Ind AS 16 Property, Plant and Equipment and Ind AS 40 Investment Property);

(b) bearer plants related to agricultural activity (see Ind AS 16). However, this Standard applies to the produce on those bearer plants.

(c) government grants related to bearer plants (see Ind AS 20 Accounting for Government Grants and Disclosure of Government Assistance).

(d) intangible assets related to agricultural activity (See Ind AS 38 Intangible Assets).

(e) right-of-use assets arising from a lease of land related to agricultural activity (see Ind AS 116, Leases).

This Standard is applied to agricultural produce, which is the harvested produce of the entity’s biological assets, at the point of harvest. Thereafter, Ind AS 2 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.

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