Study On Forest Biological Assets Accounting

Based on accounting theories,systematical study on recognition, measurement and reporting of the major assets in forestry enterprises, forest biological assets, are conducted using normative analysis and survey. Suggestions are also provided for the forestry enterprises, especially forestry listed companies, to direct their practicing in the field of accounting issues on forest biological assets. The conclusion reached is as follows:Firstly, In addition to the forestry biological assets with general asset's characteristics, but also with value's transformation, long-term of production and management, the periodic and unbalanced nature of cost accounting, high risk and the incomplete market of management etc.. In the process of confirming the forestry biological assets, it should be changed that the existing assets of woodland and forestry biological are not as a whole, it should be confirmed by their characteristics respectively. To the confirmation of forestry biological assets, there should be divided into three categories according to the characteristics and usages of forestry biological assets which the enterprises owned and controlled, the key for the confirmation is how to understand the ownership and management rights of forestry biological assets in the concept of enterprise accounting assets. It should be the confirmed condition for"assets control"that the acquirement to management right of forestry biological assets.Secondly,As a result of China's capital market is still in a state of semi-strong , forestry still belongs to public undertaking and fundamental industry, which is with low level of the market economy . Therefore, the measurement of biological assets should be followed as three steps: The present stage of historical cost-based to implement fair-value-measurement; transition period to carry out the historical cost and fair-value measurement; put the full implementation of biological assets at fair value stage while the conditions are process, which is order to line with the international community in accounting standards. Forestry biological assets should be followed and design the calculation according the three steps. Which the consumption-typed forestry biological assets and the production-typed forestry biological assets could be attempted to be transferred from historical cost-measurement to fair-value-measurement; the public welfare part of forestry biological assets should be calculated in the measurement of historical cost. The combination pattern of monetary calculation and physical model in forestry biological assets will help to change the problem which can not achieve the reflected problems while the value increasing in the long running circle, and will also improve the quality of accounting information in forestry biological assets.Finally, After overall analysis of 28 listed companies'annual report in 2007 which own forestry biological assets, there is reasonable conclusion that the fifth rule of biological assets in national Corporate Accounting Principles needs further revise and improvement, the main tasks are to revise the form of item listing in accounting statements and increase additional reporting content, namely forestry biological assets should concentrate to list the three types of consumption, production and public welfare, add detailed list related to forestry biological assets, increase the reporting requirement of forestry biological assets'categories and amounts or volume, reporting the listed companies about their methods of accounting and valuation and cost situation mandatorily, and last, report the other related information about forestry biological assets.