Meeting Summaries and Observer Notes

IASB Meeting February 2007

22 February 2007

IAS 41 requires biological assets to be measured at fair value. In some circumstances, these fair values are measured using discounted cash flows. Paragraph 21 of IAS 41 excludes from such calculations increases in cash flows arising from ‘additional biological transformation’. Interpretations of this requirement have differed, leading to diversity in practice. Therefore, the IFRIC recommended that the Board remove from IAS 41 the reference to ‘additional biological transformation’. The Board ac

IFRIC January 2007

12 January 2007

The IFRIC continued its discussion about the prohibition on taking into account ‘increases in value arising from additional biological transformation’ in paragraph 21 of IAS 41. The IFRIC also discussed the potential impact of the Board project on fair value measurement and concluded that there would be substantial benefits from complementary amendments to IAS 41.

IFRIC November 2006

02 November 2006

Between September 2003 and May 2004 the IFRIC discussed two issues relating to the accounting for biological assets and agricultural produce in accordance with IAS 41.