ScopeScope

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).

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:

<table cellspacing="0" cellpadding="0" style="width:454.35pt; margin-left:19.85pt; border:0.75pt solid #000000; border-collapse:collapse"><thead><tr><td style="width:73.3pt; border-right:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="NoNumPlain1" style="margin-bottom:3pt"><span style="font-weight:bold">Biological assets</span></p></td><td style="width:96.7pt; border-right:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="NoNumPlain1" style="margin-bottom:3pt"><span style="font-weight:bold">Agricultural produce</span></p></td><td style="width:96.85pt; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="NoNumPlain1" style="margin-bottom:3pt"><span style="font-weight:bold">Products that are the result of processing after harvest</span></p></td></tr></thead><tbody><tr><td style="width:73.3pt; border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="NoNumPlain1" style="margin-bottom:3pt"><span>Sheep</span></p></td><td style="width:96.7pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="NoNumPlain1" style="margin-bottom:3pt"><span>Wool</span></p></td><td style="width:96.85pt; border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="NoNumPlain1" style="margin-bottom:3pt"><span>Yarn, carpet</span></p></td></tr><tr><td style="width:73.3pt; border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="NoNumPlain1" style="margin-bottom:3pt"><span>Trees in a </span><span>timber plantation</span></p></td><td style="width:96.7pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="NoNumPlain1" style="margin-bottom:3pt"><span>Felled trees</span></p></td><td style="width:96.85pt; border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="NoNumPlain1" style="margin-bottom:3pt"><span>L</span><span>ogs, l</span><span>umber</span></p></td></tr><tr><td style="width:73.3pt; border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="NoNumPlain1" style="margin-bottom:3pt"><span>Dairy cattle</span></p></td><td style="width:96.7pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="NoNumPlain1" style="margin-bottom:3pt"><span>Milk</span></p></td><td style="width:96.85pt; border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="NoNumPlain1" style="margin-bottom:3pt"><span>Cheese</span></p></td></tr><tr><td style="width:73.3pt; border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="NoNumPlain1" style="margin-bottom:3pt"><span>Pigs</span></p></td><td style="width:96.7pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="NoNumPlain1" style="margin-bottom:3pt"><span>Carcass</span></p></td><td style="width:96.85pt; border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="NoNumPlain1" style="margin-bottom:3pt"><span>Sausages, cured hams</span></p></td></tr><tr><td style="width:73.3pt; border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="NoNumPlain1" style="margin-bottom:3pt"><span>Cotton plants</span></p></td><td style="width:96.7pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="NoNumPlain1" style="margin-bottom:3pt"><span>Harvested cotton</span></p></td><td style="width:96.85pt; border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="NoNumPlain1" style="margin-bottom:3pt"><span>Thread, clothing</span></p></td></tr><tr><td style="width:73.3pt; border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="NoNumPlain1" style="margin-bottom:3pt"><span>Sugarcane</span></p></td><td style="width:96.7pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="NoNumPlain1" style="margin-bottom:3pt"><span>Harvested cane</span></p></td><td style="width:96.85pt; border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="NoNumPlain1" style="margin-bottom:3pt"><span>Sugar</span></p></td></tr><tr><td style="width:73.3pt; border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="NoNumPlain1" style="margin-bottom:3pt"><span>Tobacco plants</span></p></td><td style="width:96.7pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="NoNumPlain1" style="margin-bottom:3pt"><span>Picked leaves</span></p></td><td style="width:96.85pt; border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="NoNumPlain1" style="margin-bottom:3pt"><span>Cured tobacco</span></p></td></tr><tr><td style="width:73.3pt; border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="NoNumPlain1" style="margin-bottom:3pt"><span>Tea bushes</span></p></td><td style="width:96.7pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="NoNumPlain1" style="margin-bottom:3pt"><span>Picked leaves</span></p></td><td style="width:96.85pt; border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="NoNumPlain1" style="margin-bottom:3pt"><span>Tea</span></p></td></tr><tr><td style="width:73.3pt; border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="NoNumPlain1" style="margin-bottom:3pt"><span>Grape v</span><span>ines</span></p></td><td style="width:96.7pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="NoNumPlain1" style="margin-bottom:3pt"><span>Picked g</span><span>rapes</span></p></td><td style="width:96.85pt; border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="NoNumPlain1" style="margin-bottom:3pt"><span>Wine</span></p></td></tr><tr><td style="width:73.3pt; border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="NoNumPlain1" style="margin-bottom:3pt"><span>Fruit trees</span></p></td><td style="width:96.7pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="NoNumPlain1" style="margin-bottom:3pt"><span>Picked fruit</span></p></td><td style="width:96.85pt; border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="NoNumPlain1" style="margin-bottom:3pt"><span>Processed fruit</span></p></td></tr><tr><td style="width:73.3pt; border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="NoNumPlain1" style="margin-bottom:3pt"><span>Oil palms</span></p></td><td style="width:96.7pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="NoNumPlain1" style="margin-bottom:3pt"><span>Picked fruit</span></p></td><td style="width:96.85pt; border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="NoNumPlain1" style="margin-bottom:3pt"><span>Palm oil</span></p></td></tr><tr><td style="width:73.3pt; border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="NoNumPlain1" style="margin-bottom:3pt"><span>Rubber trees</span></p></td><td style="width:96.7pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="NoNumPlain1" style="margin-bottom:3pt"><span>Harvested latex</span></p></td><td style="width:96.85pt; border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="NoNumPlain1" style="margin-bottom:3pt"><span>Rubber products</span></p></td></tr><tr><td colspan="3" style="width:288.45pt; border-top:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="NoNumPlain1" style="margin-top:3pt; margin-bottom:3pt"><span>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. </span><span></span><span>However, the produce growing on bearer plants, for example, tea leaves, grapes, oil palm fruit and latex, is within the scope of AASB 141.</span></p></td></tr></tbody></table>