Entity A had a plantation forest that is likely to be harvested and sold in 30 years. The income should be accounted for in the following way:
(a) No income should be reported until first harvest and sale in 30 years.
(b) Income should be measured annually and reported using a fair value approach that recognizes and measures biological growth.
(c) The eventual sale proceeds should be estimated and matched to the profit and loss account over the 30-year period.
(d) The plantation forest should be valued every 5 years and the increase in value should be shown in the statement of recognized gains and losses.