Bearer plant
A bearer plant is a living plant used in the production or supply of agricultural produce, expected to bear produce for more than one period, and with only a remote likelihood of being sold as agricultural produce other than as incidental scrap. IAS 16 applies to the plant. Produce growing on it remains a biological asset within IAS 41; harvested produce is initially measured at fair value less costs to sell at harvest and then enters the relevant inventory requirements. Separating the plant from its produce prevents applying one measurement model to both.
Worked example
A vineyard expects to harvest grapes from its vines for ten years and will sell the old vines only as incidental scrap. The vines are bearer plants accounted for under IAS 16; the growing grapes are accounted for separately under IAS 41.
Common mistake
Treating a qualifying bearer plant as an IAS 41 biological asset measured at fair value less costs to sell. Plants grown both for produce and for sale as timber may not meet the bearer-plant definition.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | FR | Direct | September 2026–June 2027 |
| ACCA | SBR | Direct | September 2026–June 2027 |