• Agriculture

    Project Status

    IPSAS 27, Agriculture issued in December 2009.


    John Stanford

    Task Force

    A staff project.

    Objective(s) of project

    To develop an IPSAS that converges with IAS 41 Agriculture.


    The project applies to the agricultural activity of all public sector entities, other than Government Business Enterprises (GBEs), preparing and presenting financial statements under the accrual basis of accounting.

    GBEs are required to apply International Financial Reporting Standards (IFRSs) which are issued by the International Accounting Standards Board (IASB).


    Currently the IPSASB does not have an IPSAS dealing with the accounting and disclosure of agricultural activity.


    The main issue is whether the IPSAS should include non-market related non-cash-generating agricultural activities.

    Task Force progress / Board discussions to date

    December 2009: The IPSASB issued IPSAS 27, Agriculture. It is effective for annual periods beginning on or after April 1, 2011.

    September 2009: The IPSASB considered responses to ED 36 Agriculture. The IPSASB agreed to clarify the measurement principles for non-exchange transactions and the scope exclusion for biological assets used in service delivery. The IPSASB also agreed that transitional provisions should be included on the first-time adoption of the accrual basis of accounting.

    March 2009: The IPSASB issued ED 36 Agriculture. Comments are requested by June 30, 2009.

    February 2009: Further discussion of issues, including the definition of agricultural produce and the scope. The IPSASB agreed that the definition should include agricultural produce sold for nil or nominal consideration. The scope section will include a sub-paragraph that directs that biological assets used for service delivery are outside the scope of the proposed IPSAS. Members voted in favor of issuing the ED by 17-0.

    October 2008: Members directed that public welfare biological assets, such as police dogs and forests developed for soil conservation purposes, should not be included in the scope of the ED. Members further directed that the scope of the IPSAS should be restricted to market-related activities.

    Members agreed with the staff recommendation that the term "government grant" should not be defined and that requirements and guidance on accounting for government grants in the context of agricultural activity should not be included. This is because IPSAS 23 Revenue from Non-Exchange Transactions (Taxes and Transfers) provides requirements and guidance on accounting for revenue from government grants.


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