BC86 The Board considered the disclosure requirements in IAS 16 and decided that they could be applied to bearer plants without modification. The Board also considered whether any additional disclosures should be required for bearer plants.

BC87 Some Board members were concerned that if entities move from a fair value model to a cost model for bearer plants, decision-useful information about the fair values of bearer plants and the assumptions used to determine those fair value measurements would be lost. However, the Board noted that most of the investors and analysts consulted during the user outreach performed by the staff said that fair value information about bearer plants has limited use to them without fair value information about the related land, agricultural machinery, etc. Furthermore, virtually all respondents to the ED said that disclosure of fair value information about bearer plants and/or information about the significant inputs used in valuation techniques should not be required.

BC88 The Board noted that there is no clear basis for requiring fair value disclosures for bearer plants when such disclosures are not required for the rest of the property, plant and machinery involved in the process of growing the produce. It also noted that there is also no clear basis for requiring entities with bearer plants to provide fair value disclosures for their land when these disclosures are not required for land used for other purposes. The Board further acknowledged that the limited-scope project was not intended to address fair value disclosure requirements for other assets in IAS 16. Consequently, the Board decided not to require additional fair value disclosures for entities with bearer plants.