The bearer plant is the living plant that:
- is used in production or supply of agricultural produce
- is expected to bear produce for more than one accounting period
- has the remote likelihood of being sold as agricultural produce, except for incidental scrap sales.
All living plants used to be accounted for according to the guidance set out in IAS 41 agriculture. An amendment to IAS 16 and IAS 41 was issued in 2014 to change this and now bearer plant is accounted for in accordance with IAS 16 instead of IAS 41.
Bearer plants are used solely to grow produce. The only significant future economic benefits from the bearer plants arise from selling the agricultural products that they create. Therefore, the bearer plant meets the definition of property, plant, and equipment in IAS 16 and its operation is similar to that of manufacturing. Examples of bearer plant is rubber tree, oil palms, and grapevines.