Study On Issues Of Setting China Accounting Standard On Agriculture

According to International Accounting Standard on Agriculture (IAS41), the definition of agriculture activity is that the management by an entity of the biological transformation of biological assets for sale, into agricultural produce, or into additional biological assets. Thus, agricultural activity is essentially different from activities in other industries. However, current China accounting rules do not adapt very well to the particularities of agricultural activity. As a result, it is difficult to provide reliable information about agriculture. The issued IAS41 and other Exposure Drafts of some countries or regions show the necessity of setting accounting standard on agriculture, and urge to set China accounting standard on agriculture. Based on the particularities of agricultural activity, the thesis expounds definitions of biological assets, agricultural produce, biological transformation and agricultural activity, which modify and complement the defects of IAS41. It expounds the application scope of China accounting standard on agriculture. Using theory of accounting recognition and accounting measurement, it expounds recognition conditions and measurement attributes of biological assets and agricultural produce, which are the key issues in the processing of setting accounting standard on agriculture. In line with the rules of accounting information disclosure, it also expounds the way to disclosure biological assets and agricultural produce. The whole research is from the point of view that uses the experience of issued standards on agriculture for reference and takes current special accounting environments in China into consideration.