Research On The Measurement Attribute Of Biological Assets

Agriculture is one of the most important industries in our country. Continuance, stabilization and healthy of the agriculture is the basic terms to the development of the society. The unique trait of agriculture activity and biological assets make agriculture accounting different from others. The research on the measurement attribute of biological assets is later than the industry accounting in the practice; we always want to use the result of the research on the industry assets on the biological assets and ignore the specialty of biological assets. IASC issued the IAS41-Agriculture in 2002 and executed in Jan 1, 2003. This standard has addressed the definition of the biological assets and uses the fair value in measurement. After that, there are many countries issued the principle on biological assets or agriculture, and most of them use the fair value to measure the biological assets. There are also many standards on the agriculture in our country, but they are still using the contents of industry accounting that use the history costs method, but this method cannot suit for the development of agriculture nowadays. New accounting standard of China is issued in 2006, and the biological assets are one of the independent parts in the standard because of its specialty and importance. In biological assets standard, we choose historical cost to measure the biological assets, and use the fair value only in some special situation. This is very different from other standards. So, researches on agriculture accounting, especially the measurement attribute of biological assets have theoretical and practical significance.This paper is in connection with the difference between China and international on the choice of measurement, point out the advantage of history costs and fair value, to analyze the factors that have influence on the different choice and the shortcomings in China'standard. At last, address the points on the author's own.The full article divides into five parts altogether: Chapter one: Introduction. Sketching background, summing up the research meaning and purpose of this article, establishing the research approach, and laying a solid foundation for the successor of this article.Chapter two: Measurement on biological assets: basic theories and review on the researches. This chapter introduced the basic theories on measurement of the assets and also the biological assets at first, and then has a review on the research about the measurement attribute. We could see that the mainly difference between foreign researcher and our researcher is on the research time and the focus on the problems. We also have analyzed on this differences.Chapter three: Research on the development of biological assets'measurement attribute. This chapter introduced the development history of the biological assets standard in China and international. Find out that the different history development of agriculture accounting has direct influence on the development of biological asset's standard. At last, we analyzed that the difference of research institution, undergoing experience have influence on the development of agriculture/biological assets, especially on the choice of measurement attribute of biological assets.Chapter four: The choice on the measurement of biological assets in China. This chapter firstly analyzes the new standard and indicates the defects in it. Second, analyzes the factors that have influences on the measurement of biological assets. Then brings up the author'points on the measurement after thinking about these two problems. This paper use the different criterion to classify the biological assets in first get date and statement date, and use fair value to measure them. At last, clear the method of how to ascertain the loss or the gain in the statement day and indicate the advantages of fair value.Chapter five: Conclusion of the research. To close the paper do not mean that the end of the research. Academic research will have no edge. There are also many aspects to explore in such a newly area. So, at the end of the paper, we pointed out that the prospect in this filed and summarizing the conclusion of this paper.The innovations:(1) This paper is explored on a new filed. Agriculture is the basically of the economic development in China. But the discussion on biological assets and its measurement is very late in our country, and the researches and standard related to this filed is also very few. The only independent statement on it is in newly accounting standard (2006). But we could see that biological assets will still have a very important position in our country. So, this paper is explored on a new filed combine with the development of accounting, and its meaningful.(2) This paper doesn't stick to the statement of the accounting standard in our country, and brings up the different points that use fair value. This point has fully considered the trend on the development of China and abroad, notices the factors that have effect on the measurement of biological assets.(3) Have divided the measurement of biological assets into initial measurement and measurement in balance sheet date. Classify and expound the biological assets in different criterion at these two points in detail.In a word, I think that no matter the particular of the biological assets nor the factors have effect outside, the fair value measurement potion of biological assets will be and must be well used.