Research On Biological Assets Valuation Theory

Valuation has been developing a profession field in China gradually in the process of the reform and opening up and constructing socialism economy, theorists and action have spent much energy on it, thus making a sound foundation for assets evaluation's development in our country. As developing highly the economy, the fields it deals with have become wider and wider, and its content has become richer and richer. Meanwhile the shortage of the theory on assets valuation at present gradually appears. The theory on assets valuation at present only value non-life assets, including machine, real estate, resources assets, intangible assets, long-term equity investments, liquid assets, enterprise value assessment, jewelers and valuation for financial report and so on. But live biological assets have been discussed very limited. Biological assets are foundational economical resources for human's activities. It is necessary to value biological assets when biological assets is changed their property rights to assure the economical interests of assets owners, users, national and others.In this paper, the biological assets assessment is based on assessment of the general assets on the basis of the theory. Through aggregating domestic and foreign literature review, firstly, the assets of the valuation industry are different from the definition of assets of economics, law and accounting. After the analysis of the asset valuation of the characteristics of assets, the biological assets are the living animals and plants of economic resources, which are owned or controlled by the owner, can bring economic benefits, measure by the monetary and relate to agricultural activities. It introduces the classification of assets, and its unique feature how to impact valuation, including the life of assets, cyclical growth, the high demands on the natural environment, and agriculture-related activities, the imperfection market and the extension of the assets. Secondly, on the basis of the labor theory of value, effectiveness value and the scarcity value, it analyses of the different species of the value of the assets. Thirdly, it analyses the purposes, hypothesis, principal of assets valuation, and on the basis of which discusses the six purposes, two hypotheses, six principal of biological assets. it analyses the expendable and producing biological assets how to choice valuation methods. Finally, it analyses biological assets valuation for financial report and should pay attention to the matter. For the purpose, the fair value of assets should be paid attention to four questions and the target should be considered the three requirements.