BC68 The Board noted that, on the basis of the responses to the 2011 Agenda Consultation and the outreach performed by the staff, the costs of measuring bearer plants at fair value are perceived by many preparers to exceed the benefits to users of financial statements. The Board also observed that nearly all investors and analysts consulted during the outreach performed by the staff said that the IAS 41 fair value information about bearer plants has limited use to them. The main reasons given by the investors and analysts were:
(a) information about operating performance and cash flows is more relevant to their forecasting and analysis. Consequently, they eliminate changes in the fair value less costs to sell of bearer plants from the figures used for their analysis.
(b) there are concerns about relying on the fair value measurements because valuations involve significant management judgement, have the potential for manipulation, and assumptions vary significantly between companies.
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