Webinars On-Demand

Accountants' Discussion Forum: Accounting for Farming

Overview   

Agriculture plays a vital role in South Africa's economy. Finacial reporting and taxation of farming operations require the application of unique standards, specialised tax treatment as well as presenting measurement challenges. It is essential that accountants stay up to date with the latest guidance and regulatory requirements affecting the agricultural sector.  

This webinar focuses on the critical accounting and tax considerations for farming operations, exploring these key topics:  

• The practical application of IAS 41 – Agriculture 

• Relevant sections of IFRS for SMEs. 

• The First Schedule of the Income Tax Act.  

• VAT compliance specific to agricultural enterprises. 

Join our technical experts Caryn Maitland CA(SA) and Carmen Westermeyer CA(SA) for a vibrant discussion on accounting and taxation complexities faced by farming entities, empowering accountants to provide accurate, compliant and value-adding services to clients in the agricultural sector. 

Learning objectives and competencies developed 

Through an in-depth analysis of the latest regulatory developments, real-world case studies and practical examples, this webinar will equip you with the following competencies:   

• Gain a working understanding of IAS 41 – Agriculture and its application to biological assets.  

• Understand the recognition, measurement and disclosure requirements for crops and livestock under IFRS and IFRS for SMEs.  

• Learn the tax implications of farming income under the First Schedule of the Income Tax Act.  

• Appreciate the accounting treatment of bearer plants and the impact of the IAS 16 amendments.  

• Be equipped to identify and address common errors and compliance risks in farming financial reporting and taxation. 

Content to be discussed 

The following topics are under discussion for this month:  

• Accounting Framework 

• IAS 41 – Agriculture 

  • Definition and scope: Biological assets and agricultural produce 

  • Recognition criteria and initial measurement 

  • Subsequent measurement: Fair value less cost to sell 

  • Distinction between consumable and bearer biological assets 

  • Government grants related to agricultural activity 

• Bearer Plants 

  • Amendments to IAS 16 and IAS 41 

  • Accounting treatment of bearer plants as property, plant and equipment (PPE) 

• IFRS for SMEs (Section 34 – Specialised Activities) 

  • Recognition and measurement of biological assets 

  • Comparisons to full IFRS 

• Deferred Tax Implications 

  • Recognition of temporary differences in fair value adjustments 

  • Section 29 of the Income Tax Act 

• Related Issues 

  • Intangible assets in agriculture (e.g. land use rights, breeding rights) 

  • Land treatment and whether land is depreciated 

  • Harvesting vs growing phase: Work-in-progress crop inventory 

•  Tax Considerations for Farmers 

• Income Tax Act – First Schedule 

  • Gross income and allowable deductions for farmers 

  • Capital development expenditure 

  • Treatment of livestock and produce 

  • Deductions for soil restoration, dams, fencing, boreholes 

  • Recoupments and allowances 

• VAT Considerations 

  • VAT registration and zero-rating of agricultural products 

  • Timing of output and input VAT 

• Provisional Tax and Estimated Assessments 

  • Special rules for farmers with seasonal income 

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