Historically, agricultural activities received scant, if any, attention from the world’s accounting standard setters. This may have been due to the fact that the major national and international accounting standard setters have been those of the US and the UK, whose economies are far less dependent upon agriculture than those of many less-developed nations of the world. For developing nations, agriculture is indeed disproportionately significant, and given the IASC’s role in establishing financial reporting standards for those nations, this focus on agriculture was perhaps to be expected. The culmination of this lengthy project, IAS 41, is by far the most comprehensive addressing of this financial reporting topic ever undertaken.

Prior to the development of IAS 41, assets related to agricultural activity and changes in those assets were excluded from the scope of International Accounting Standards. For instance, IAS 2, Inventories ...

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