FRSB Revisits Accounting Standard on Agriculture

21 July 2004

FRSB Revisits Accounting Standard on Agriculture

The Institute of Chartered Accountant’s Financial Reporting Standards Board (FRSB) announced today that it will undertake a further round of consultation on the New Zealand equivalent of the International Accounting Standard on agriculture (IAS 41).

FRSB Chairman Joanna Perry said the additional consultation with industry was necessary to address the very strong submissions on the standard received by the Institute.

In many cases the FRSB considers that the standard will improve the quality of reporting within the agriculture sector. The FRSB accepts, however, that for some sectors the standard may cause difficulties.

“The problems turn around perceived difficulties in determining the ‘fair value’ of certain agricultural and biological assets and compliance costs, Ms Perry said.

“We will be working through these matters with sector representatives to get a better picture of real and perceived difficulties,” Ms Perry said.

The consultation will take place over the next month and will involve Institute staff and members of the FRSB meeting with sector groups and significant entities in such areas as the Kiwifruit industry and forestry.

Ms Perry said that she did not consider that this additional consultation would threaten the ability of the FRSB to have the stable platform of International Financial Reporting Standards reviewed and approved by the Accounting Standards Review Board by the end of this year.

ENDS

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