In a meeting of National Standard Setters (NSS) in March 2011, the Malaysian Accounting Standards Board (MASB) called for limited amendments to IAS 41 Agriculture and requested the IASB to reconsider the accounting treatment for bearer biological assets (BBA) by adding a definition of BBA and including BBA within the scope of IAS 16 Property, Plant and Equipment. The MASB proposes that no change be made to the accounting treatment for consumable biological assets (CBA), for which the most appropriate measurement basis is fair value as prescribed in IAS 41.
NSS Chairman commented that many jurisdictions have the same concerns as those held by Malaysia and a post implementation review of IAS 41 would be timely.
An Australia representative said that IAS 41 was one of the first fair value measurement standards. The standard is deficient in relation to modern thinking on fair value.
Representatives from New Zealand, India and other Asian countries fully supported the MASB’s position that the IASB should review aspects of IAS 41. Representatives from Brazil and Mexico said this topic was very important for Latin America and fully supported Malaysia.
About National Standard Setters (NSS)
The MASB participates in the National Standard Setters (NSS), which is an informal grouping of national accounting standard-setters from around the world, including other organisations that are committed to working, in the public interest, for the improvement of financial reporting.
NSS supports the mission of the International Accounting Standards Board (IASB) to develop a single set of high quality, understandable and enforceable global accounting standards that require high quality, transparent and comparable information.
In furtherance of these aims NSS:
- Assists participants in carrying out research aimed at the development of improved future accounting standards.
- Reviews and comments on IASB’s agenda and proposals for changes in international bodies concerned with financial reporting.
- Provides a forum for an exchange of views and sharing of experience between participants about other issues in financial reporting, including in the public and not-for-profit sectors.
The NSS meets twice a year. Here is the most recent report on NSS meeting in 2011 March, NSS Meeting in New York, USA.
See related post : Application of IAS 41 Agriculture in Malaysia
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