Study On Biological Assets Accounting Standard

Biological assets are one of the main factors of production that people are engaged in the agricultural activity, biological assets are important components of agribusiness' assets. Different confirming methods of biological assets value affects much important. The unique trait of agriculture activity and biological assets make agriculture accounting diferent from others. As a result of the biological growth and development, the accounting of biological assets can't just adopt historical cost, because it underestimates the biological assets value。We can't disclose biological assets value the same as industrial organization, because it can't give the investor or the superviser with thorough knowledge. So research into agriculture accounting, especially the measurement attribute of biologicalassets, have theoretical and practical significance.The new promulgated Chinese Agricultural Standards 5 is tending toward consistent with International Accounting Standards, at the same time.it keeps down it's own feature. The resonable biological assets accounting calculation is complicated. But now there is no thorough domestic research of reasonable measurement standard as to diferent biological assets. This is the original intention of this paper investigation. The full article is divided into six parts altogether。In the first part, sketching background, purpose and meaning in which this article studies, summing up the domestic and international research dynamic status, defining the research range of this article, establishing the research purpose of this article and research approach, and laying a solid foundation for the successor of this article. Secondly, this paper presents about the biological assets concept, a detailed analysis of biological assets attribute. Thirdly, contrasting CAS5 with IAS41, giving analysis on their difference and puting over the reasons. Fourthly puting across that biological assets fair value should be established and it has feasibility in china. With the idea of sustainable development, biological assets account attribute should not be limited to historical cost. This chapter at the same time discusses concept and the concrete gauging on the fair and just value. Fair and just value aseseement on biological assets is reality choice. Due to the biological assets attribute of persistent increase of value, we should change the traditional accounting method which only withdraws the loss in value, we also calculate surplus value. There are lots of biologic assets in the world,so the author mostly chooses the forest biologic assets as subject investigated. In order to explain how to establish biological assets fair value model, the paper gives "Liancheng Guanzaishan Forest Villa Company" where is the auhor now working at as an example in Chapter five. Through such analysises, the paper draws that the proper way of accounting for them is to use diferent measurement attribute according to their growing period and the way of acquirement.Finally, conclusions are summarized. All biological assets come into being by natural and manpower forces, so historical cost accounting measurement on biological assets undervalue their real worth, And it goes back on the accountant relevance principle. So, in settlement of the unfair assessment on biological assets , the author makes suggestions that the accountant system should join together with the assessment system, to make use of the complementary advantages. At the same time, the correlative management of our government should lay down the rules about biological assets technical evaluating specification. Only in this way could we establish biological assets fair value accountant.Owing to the narrow range of the author's knowledge and complex on biological assets, the study on biological assets value measurement can't be thoroughgoing. This topic should carry on for the future.