B3 A main objective of the IASC is to develop International Accounting Standards that are relevant in the general purpose financial statements of all businesses. While most International Accounting Standards apply to entities in all activities, some International Accounting Standards, for example IAS 30 Disclosures in the Financial Statements of Banks and Similar Financial Institutions [In August 2005, IFRS 7 Financial Instruments: Disclosures superseded IAS 30.] and IAS 40 Investment Property, deal with issues that arise in particular activities. IASC has also undertaken industry‑specific projects on insurance and extractive industries.

B4 Diversity in accounting for agricultural activity has occurred because:

(a) prior to the development of the Standard, assets related to agricultural activity and changes in those assets were excluded from the scope of International Accounting Standards:

(i) IAS 2 Inventories excluded 'producers' inventories of livestock, agricultural and forest products... to the extent that they are measured at net realisable value in accordance with well established practices in certain industries';

(ii) IAS 16 Property, Plant and Equipment did not apply to 'forests and similar regenerative natural resources';