On 30 June 2014, the IASB issued Agriculture: Bearer Plants Amendments to IAS 16 and IAS 41 (the Amendments). The Amendments define a bearer plant as a living plant that is used in the production or supply of agricultural produce, is expected to bear produce for more than one period and has a remote likelihood of being sold as agricultural produce, except for incidental scrap sales. The Amendments remove bearer plants from the scope of IAS 41 Agriculture and include them within the scope of IAS 16 Property, Plant and Equipment.
On 19 September 2014, EFRAG issued its Endorsement Advice and Effects Study Report relating to the Amendments for use in the European Union and European Economic Area.
EFRAG supports the adoption of the Amendments and recommends their endorsement.