The business of agricultural production is becoming increasingly complex and CPA Canada has recently approved a new ASPE standard dealing specifically with the unique characteristics of Agricultural production. This course will highlight the key aspects of the new Canadian ASPE accounting standard for agriculture as it applies to the unique characteristics of agricultural inventories and productive biological assets. This course will provide practical examples and guidance regarding the recognition and measurement of these agricultural assets.

This course offers a detailed review and analysis of the new ASPE agriculture standard (3041) dealing specifically with agricultural inventories and productive biological assets. The course will present a number of factors for consideration in making a policy choice on to how to recognize and measure agricultural inventories and will discuss the implications of each policy choice. A detailed review of the standard as it applies to productive biological assets will be presented and the course will enable participants to apply the presentation and disclosure requirements of the new ASPE agriculture standard. 

Topics Include:

• The purpose and scope of the new ASPE agriculture standard.
• The measurement of agriculture inventories including the description and explanation of the associated policy choices of the Cost model and the Net Realizable Value model concerning measurement of such inventories.
• The measurement of productive biological assets, including when it is appropriate to amortize such assets and/or recognize the impairment of them.
• Detailed presentation of the presentation and disclosure requirements of these unique assets.
• Presentation of the effective date and the transitional requirements of the new ASPE agriculture standard.
• Comprehensive example to demonstrate the above with emphasis on the issue of basic stock option that are most commonly seen.

NOTE: No updates or changes were made to the 2024 version of this course. If you completed the course in 2022 or 2023, please be advised the 2024 course material has not changed. If you have any questions, please contact pdevents@cpaontario.ca.

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Upon completion of this course, participants will be able to:

• Identify the scope and purpose of this new section.
• Recognize the multi-layered accounting policy choices for dealing with the recognition and measurement of agricultural inventories and understand the considerations in making these choices.
• Identify the new standard requirements for recognition and measurement of productive biological assets and how to deal with them if and when they become impaired or non-productive.
• Apply the transitional rules associated with the initial adoption of this new standard.
• Comply with the presentation and disclosure requirements of both agricultural inventories and productive biological assets.