RE: Question7 Aug 2018 22:13
I just wanted to counter the point that just because we effectively lease the land we wouldn't own anything, au contraire, overnight we get huge value.
IAS 41, Agriculture, introduced fair value accounting for standing timber.
This differs from felled trees/waste as that would be inventory, the standing trees have value which would be attributed to AEG.
IAS 41 requires biological assets to be measured on initial recognition and at each balance sheet date at their fair value less costs to sell. The current definition of fair value in IAS 41 is the amount for which the asset could be exchanged between knowledgeable, willing parties in an arm’s length transaction. It represents a market price for the asset based on current expectations.