Research On The Accounting Measurement Mode Selection Of Biological Assets In China

China is a large agricultural country, which is rich in biological resources and biological assets. As the basic production of agricultural enterprises, biological assets in addition to have the features of general assets, they also have a feature of "bio-transformation". For the special nature of biological assets, how to choose the accounting measurement mode of biological assets, is an important problems needing to study and solve in the current field of accounting. IAS41 provisions the fair value measurement model is preferred on biological assets; but CAS5 preferred historical cost measurement model. In the context of international convergence of accounting standards, which measurement model can objectively reflect the real value of biological assets, the issues must be studied in greater depth.The accounting measurement mode selection of biological assets is a debate focus of the theorists and practitioners. Currently, foreign research focuses on development of the accounting standards, and the historical cost measurement model and the fair value measurement model have engaged in a fierce debate. The study on biological assets still in its infancy in China, researching on forest assets start relatively early, the other areas of biological assets including farming, poultry industry and other aspects research very few. Although some scholars have proposed a hybrid approach using the two measurement models, but how to apply specifically have not demonstrated fully.This article is based on domestic and foreign research, firstly, describing the theory of biological assets, laying the foundation for the study. Secondly, describing the historical cost measurement model and the fair value measurement model of biological assets mainly based on domestic and foreign agriculture-related criteria, and describing the accounting consequences of the two measurement model combing with case. Thirdly, discussing the measurement model of biological assets suited to China. From our national conditions, a single measurement model of biological assets, can not objectively reflect the real value of biological assets, the use of mixed measurement mode are reasonable; and this article points that we should use different measurement model respectively, combing with the type of biological assets in various industries (agriculture, forestry, animal husbandry, poultry, fisheries, etc.)and the characteristics of growth stages: Fair value measurement model preferred, When the fair value measurement mode is not met, combing with the characteristics and the growth stage of biological assets to analyze specific issues .We can use historical cost + natural value, net realizable value, net present value of the income to measure the value of biological assets. Finally, an example of poultry is used to discuss the measurement mode of biological assets, and points that poultry industry should combine the life cycle of the poultry to use the different measurement model.