timline for agri assets26 Mar 2015 09:01
finally we can see some light re pineapple growing and other agri bus being developed -
2. Significant accounting policies (continued)
(g) Biological Assets
Biological assets comprise oil palm, rubber, pineapple and cacao trees from initial preparation of land and planting of seedlings through to maturity and the entire productive life of the trees.
All costs comprising mainly land clearing, land terracing and drainage, planting, weeding and fertilising involved during the immature period until the trees are ready for commercial harvesting at approximately 0 - 3 years for oil palm, cacao and pineapple and 0-7 years for rubber, are capitalised. Plantation development costs comprise all rehabilitated plantation development costs such as direct materials, labour and an appropriate proportion of fixed overheads.
Oil palm, rubber, pineapple and cacao produce is measured at fair value with any change in fair value recognised in the income statement. The bearing plant of each type of produce is recognised at cost and depreciated over its useful economic life.
Under IAS 41 bearer plants are defines as an asset which:
· is used in the production or supply of agricultural produce;
· is expected to bear produce for more than one period;......