Impact of Ind AS 41 – Agriculture on Tea Industry
– By CA Niketa Agarwal
The Ministry of Corporate Affairs (‘MCA’) issued a press release on January 2, 2015 announcing a roadmap for the implementation of Ind- AS based on a company’s net worth. With respect to agricultural sector, before the introduction of the Companies (Indian Accounting Standards) Rules, 2015, there was no specific accounting literature in India (previous GAAP) that required recognition of biological or bearer plant and hence no accounting for such items was made in the financial statements. This article set outs the accounting treatment and disclosures relating to agricultural activity.