BC83 The Board considered whether the other recognition and measurement requirements of the cost model in IAS 16 were sufficient to address the unique costs of growing bearer plants both before and after they reach maturity. The following were the main requests for guidance raised by respondents to the ED:

(a) how to assess what is an abnormal amount of wastage/mortality during the growth phase of the bearer plants. The Board noted that there is a similar issue when an entity constructs a large number of fragile items of machinery for use within the business.

(b) the nature of costs that can be capitalised before maturity. The Board noted that although the examples in IAS 16 are about non-living items, paragraph 17(a)–(b) and (e) of IAS 16 adequately covers the types of costs incurred to cultivate and grow bearer plants.

(c) allocation of costs after maturity between the growing fruit and the bearer plant. The Board noted that an entity may recognise all costs as an expense after maturity unless they meet the criteria for capitalisation as part of bearer plants in accordance with paragraph 7 of IAS 16. Consequently, such guidance would not be necessary.