In accordance with its Standard-setting Due Process Manual, the Accounting Standards Board (AcSB) typically decides whether to conduct a post-implementation review (PIR) after a two-year period from when a new standard becomes effective. Section 3041, Agriculture, in Part II of the CPA Canada Handbook – Accounting Standards for Private Enterprises was effective for fiscal years beginning on or after January 1, 2022.
The information gathered to date, including discussions with the AcSB’s Agriculture Advisory Group, suggests that the standard is generally understandable and is being applied as intended. Therefore, the Board approved a narrow-scope amendment project to address a few application issues identified instead of conducting a PIR.
Interested and affected parties have informed the AcSB of operational challenges with providing certain disclosures under the net realizable value model. Clarification is also requested on how to determine productive capacity, particularly for productive biological assets managed on a collective basis to improve application in practice.
This project seeks to:
(a) remove the disclosure requirements in paragraphs 3041.88(c) and 3041.88(d) of the net realizable value model; and
(b) develop additional guidance to assist agricultural producers in determining productive capacity for productive biological assets to achieve more consistency in the application of paragraphs 3041.64 and 3041.66.