Bearer Plants: A new life

Agricultural accounting under Ind AS

Ind AS has brought about a paradigm shift in accounting in the agricultural sector in India. One of the key changes is the introduction of the concept of bearer plants. This publication discusses the concept of bearer plants and its accounting for Ind AS compliant financial statements.

Ind AS represents a significant shift in accounting which will require CFOs to incur more time in setting standards for their organizations.

With respect to bearer plants, before the introduction of the Companies (Indian Accounting Standards) Rules, 2015, there was no specific accounting literature in India that dealt with agriculture. Therefore, all costs that were incurred towards development of the estates were normally capitalized and disclosed as Estate & Development under tangible assets and generally not depreciated. Costs incurred on replanting were generally treated as an expense in the Statement of Profit and Loss. Products that were the result of processing after harvest were considered as inventory.

In this publication, we discuss the concept of bearer plants and highlight the changes in their accounting brought about by Ind AS.

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