05-19-2011, 07:33 PM
Under the International Financial Reporting Standards (IFRSs), the trees are dealt with by International Accounting Standard (IAS)-41 'AGRICULTURE'.
IAS-41 includes the trees and plants in the definition of 'Biological Assets' and lays down complete guidance as to how these can be recognized, measured or derecognized.
Obviously, trees and plants are not part of Property, Plant and Equipment (fixed assets) defined in IAS-16. However, there is a complete solution for their accounting treatement as assets (biological assets) for which I recommend you to go through the IAS-41.
Regards,
