Study On Recognition And Measurement Of Farmland And Biological Assets

Accounting reform in China is aiming at establishing a set of accounting calculation system which is not only suitable for the development of our social market economy, but also consistent with International Accounting Standards(IAS) in some important aspects. Business Accounting System (HAS) was issued on 29 Dec 2000 in our country. BAS cancelled industrial differentials, but after all accounting calculation of agricultural enterprises has their notable characteristics from other industries, for instance, calculation of farmland and biological assets, and so on. These contents are not included in BAS, but must be solved currently.At present, production and operation of agricultural enterprises in our country cannot develop without farmland. We maybe say farmland is the most important asset for agricultural enterprises. But farmland in our country belongs to nation and collective. So most part of farmland (except for its right of use) is not listed in financial report. This caused that assets and liberties of enterprises can't be truly reflected and violated the principle of truthfulness of important asset for the following enterprises-crop farming, livestock breeding, forestry, marine products industry. Now for calculation on biological assets is not separately shown in BAS, so calculation on biological assets is not standardized in our enterprises.This paper begins with the definition of asset, discusses genera] conditions of asset recognition, and recognizes farmland and biological assets respectively, then holds that farmland should be recognized as fixed and intangible assets individually.The paper is based on researching and discussing the theory of assets recognizing, decides and analyzes deeply the model of measurement of farmland and biological assets. Ahead of measurement of farmland, its price and factors are analyzed and discussed, and then several kinds of price appraisal methods of farmland are discussed.On the base of recognition and measurement of farmland and biological assets, the paper further designs calculation methods of concrete business about farmland and biological assets and explains concrete calculation method by a case.The main content and innovation of this paper lie in the following points:First, the former relative research on recognition and measurement were confined in general laws, but seldom on some more complex and concrete accounting element This paper selects farmland and biological assets to research, and it is characteristic from the point of research field and subject selected.Second, in view of the current situation that for a long time land asset was not calculated in agricultural enterprises, the paper analyzes the reason of the problem and its pros and cons, then with reference to international usual practice, probes into the recognition and measurement of farmland and biological assets, so as to provide the feasibility and maneuverability for our agricultural enterprises.Third, the paper analyzes that our current new BAS is not adaptive to agricultural enterprises. In accordance with the characteristics of agricultural enterprises and with reference to international usual practice, this paper inquires into our agricultural enterprises so as to supply theoretical basis for agricultural enterprises.Forth, the paper designs calculation methods of concrete business about farmland and biological assets and this provides operation guide for calculation of farmland and biological assets.