Point of maturity (para. BC82)

BC82 Most respondents to the ED requested additional guidance on when a bearer plant is in the ‘location and condition necessary for it to be capable of operating in the manner intended by management’ in accordance with paragraph 16(b) of IAS 16 - ie when it is deemed to have reached maturity. For example, an oil palm may start to grow produce after two years, but only reach its maximum yield after seven years. Respondents suggested either defining the date of maturity to be ‘the date of the first harvest of commercial value’ or ‘the date commercial quantities of produce are produced’. The Board noted that without further clarification these terms would not assist entities in applying judgement in this area and would be likely to lead to interpretation requests in the future. The Board also noted that a similar scenario arises for a factory or retail outlet that is not yet capable of operating at full capacity and did not think that this was a major issue in practice. Conse

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