BC95 The Board noted that if an entity currently measures its bearer plants at fair value less costs to sell and has not previously collected cost information, collecting this information to measure the cost of those bearer plants may be costly. If bearer plants have long life cycles, entities could be required to look back several decades in order to obtain the necessary information. Consequently, for cost-benefit reasons, the Board decided that the amendments to IAS 16 should permit the use of fair value as deemed cost for items of bearer plants at the beginning of the earliest comparative period presented in the financial statements. The Board also noted that the amendments address an immediate need for entities with bearer plants. Consequently, the Board decided that the amendments should be available for early application.

BC96 Virtually all respondents to the ED supported the transition requirements without change. However, some respondents said that the Board should clarify how to account for differences between fair value and the carrying value determined in accordance with IAS 41 (fair value less costs to sell) at the transition date. The Board agreed.