Agricultural

Activities
PSAK 69
Facilitators

Erwin Effendy Swardi Johnson

KAP Purwantono, Sungkoro & Surja KAP Purwantono, Sungkoro & Surja
Senior Manager Senior Manager
Assurance Assurance

Anky Paulus
Rizky Hariandja
KAP Purwantono, Sungkoro & Surja
KAP Purwantono, Sungkoro & Surja
Senior Manager
Manager
Assurance
Assurance

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 Scope of PSAK 69

Scope Scoped Out

PSAK 69 shall be applied to account
for the following when they relate to a)
agricultural activity:
a)biological assets, except for bearer
plants; b)
b)agricultural produce at the point of c)
harvest; and
c)government grants. d)
e)
Agricultural Activities
“the management by an entity of the
biological transformation and harvest
of biological assets for sale or for
conversion into agricultural produce
or into additional biological assets”
Land related to agricultural
activity
Bearer plants
Government grants related to
bearer plants
Intangible assets related to
agricultural activity
Right-of-use assets arising from a
lease of land related to
agricultural activity

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Scope & definition of bearer plants (PSAK 16)
Scope
Bearer plants are those living plants
which are:
a) Used in the production or supply
of agricultural produce
b) Expected to bear produce for
more than one period
c) Not intended to be sold as a
living plant or harvested as
agricultural produce, except for
incidental scrap sales
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Impact
Expected to meet:
• Grape vines, oil palm trees, rubber trees, etc.
• Some plants that may appear to be
consumable, such as the root systems of
perennial plants (e.g., sugar cane or bamboo).
Not expected to meet:
• Annual crops and other plants that are held
solely to be harvested as agricultural produce
(e.g., arable crops such as maize, wheat and
soya, as well as trees grown for lumber),
• plants that have a dual use, that is, both
bearing produce and the plant itself being sold
as either a living plant or agricultural produce.
Not clearly addressed:
• Changes after initial recognition, i.e., do not
meet definition anymore.
Accounting for Bearer Plants
First time adoption
►Full retrospective.
Cost Model
• An entity must assess whether there are indicators
►Deemed cost. that the asset is impaired at the end of each reporting
Accounting options period.
►Cost model. • Impairment test must be performed when indicators
are existed.
►Revaluation model
• Asset of a subsidiary acquired through business
Depreciation combination.
►Useful lives: based on the period over which the bearer Revaluation Model
plants are expected to be available for use by an entity; • The revaluations will need to take place with sufficient
historical experience in managing the bearer plants. regularity to ensure the carrying amount does not
►Depreciation method: shall reflect the pattern in which the differ materially from the asset’s fair value.
asset’s future economic benefits are expected to be • Caution in separating the fair value of the bearer
consumed by the entity. plants and the growing agriculture produce.
►Commencement of depreciation: the point upon which the • Rule OJK VIII.G.7 – when a listed entity used
bearer plants are in the location and condition necessary revaluation model for its fixed assets, intangibles or
to be capable of operating in the manner intended by an investment property, it shall engage an appraiser in
entity. estimating the fair value.
Residual value Presentation and disclosures
• In the face of SOFP as part of non-current assets
►The amount to be obtained by an entity as compared to
the investment made.
under fixed assets or separately.
• In the note to F/S – consistent with SOFP.
Cost Model • First time adoption: SOFP as at three dates, detail in
►Carried at cost less any accumulated depreciation and any the note to F/S as at two dates.
accumulated impairment losses.
Revaluation Model
►shall be carried at a revalued amount less any subsequent
accumulated depreciation and subsequent accumulated
impairment losses.

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Illustrative example: presentation and disclosures
of bearer plants

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Accounting for biological assets
When should an entity
recognize biological assets /
agriculture produce?
• Par 5/5c: Produce
growing on bearer plants
is a biological asset.
• Par 10: An entity shall
recognize a biological
asset or agricultural
produce when, and only
when:
 the entity controls the
asset as a result of
past events;
 it is probable that
future economic
benefits associated
with the asset will flow
to the entity; and
 the fair value or cost
of the asset can be
measured reliably.
• Conclusion: an entity
shall recognize produce
growing on bearer plants
when their FV can be
measured reliably.
Growing Produce
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Biological assets are to be
recognized at FVLCS at the
Point of Harvest
• Level 1: quoted prices
(unadjusted) in active
markets for identical assets
or liabilities
• Level 2: other than quoted
prices included within Level
1 that are observable for the
asset or liability, either
directly or indirectly.
 Example: for oil palm
fruit, quoted price may
use periodic guidance
from regional Dinas
Perkebunan.
 Example: Proxy for
volume of oil palm fruit
may use production for 3
to 4 weeks.
Measuring FV
Biological assets are to be
Carried at FVLCS at the Point
of Harvest cont’d
• Level 3: unobservable inputs
for the asset or liability.
 Valuation techniques, such
as discounted cash flows
under income approach,
(replacement) cost or
market approach.
 Caution in using income
approach: appropriate
market price, and
allocation of cost to bring
the fruit to maturity and
the bearer plant.
• Cost to sell: incremental
costs directly attributable to
the disposal of an asset.
Measuring FV
Accounting for biological assets continued

Approach used in estimating the FV of produce

• Valuation techniques that are appropriate in the circumstances and for which
sufficient data are available,
• Maximizing the use of relevant observable inputs and minimizing the use of
unobservable inputs.
• Valuation techniques used to measure fair value shall be applied consistently, unless
inputs become unavailable or observable inputs become available.

Interaction between bearer plants and agriculture produce

• As at each periodic closing an entity shall recognize both growing produce and
harvested produce at FVLCS as the point of harvest.
• Upon the adoption of PSAK 69, entities are recognizing growing produce and gain
on fair value of biological assets would be recognised.
• When the produce is harvested, it is recognized at FVLCS and when it is transferred
to inventory (Under PSAK 14) at FVLCS becomes the cost in applying IAS 2 / PSAK
14.

Other notable matters

• It is advised that the recognition and measurement of biological assets are
integrated to the system rather than through additional adjustments.
• Entities are recognizing temporary difference for the excess of fair value over the
cost of the biological assets.
• Estimation of the biological assets are generally represents significant risk.

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Illustrative example: presentation and disclosure
of biological assets / produce

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Illustrative example: presentation and disclosure
of biological assets / produce continued

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Others
Questions & Answers

Q
& A
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Study case

Perusahaan ABC, didirikan pada tahun 2018, dimana tahun 2022 merupakan tahun pertama
perusahaan melakukan panen untuk pertama kali, sekitar dibulan Agustus 2022. Area kebun berada
di pedalaman propinsi Riau Kepulauan yang berada 20 km dari pusat kota. Untuk Laporan Keuangan
pada 31 Desember 2022, Perusahaan akan melakukan penghitungan dari Fair Value Biological Asset
yaitu Tandan Buah Segar (TBS) sesuai dengan PSAK 69 dengan melakukan hierarki perhitungan di
level 2. Manajemen menyimpulkan bahwa TBS yang mempunyai Oil Konten Optimal sesuai survei
dan penelitian dilapangan terbentuk antara minggu ke 19-22 dari tanggal penyerbukan tanaman
kelapa sawit dengan kadar 50%, Sehingga kuantitas panen TBS yang akan mempengaruhi nilai fair
value biological asset dititik panen berkisar dari H+1 dari tanggal Laporan Keuangan sampai dengan
H+30 dari tanggal Laporan Keuangan (1 bulan masa panen)
Berikut adalah data yang diperoleh dari Manajemen:
Daftar harga TBS Biaya panen : Daftar kuantitas
panen:

Berdasarkan informasi di atas, hitunglah nilai fair value Biological Asset untuk TBS per 31
Desember 2022

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