| With the perfection of socialist economic system and the accelerating process of agricultural industrialization in China, the number of trades concerning biological assets is increasing rapidly. In recent years, issues regarding information disclosure among the public companies in agricultural sector have been frequently revealed, which has resulted in huge negative impact to both the capital markets and the stakeholders. Consequently, the demand for biological assets value assessment is getting stronger by the society. Due to the unique essential of biological assets, it is more difficult to assess its value than any other assets. Therefore, a thorough study on the biological assets value assessment needs to be done theoretically and practically.As a kind of "live" animals or plants, biological asset has its unique essential characteristic. This paper uses two of methods, the biological assets value assessment theory and biological assets value assessment practice to make a systematic analysis and research. First of all, the study reviews domestic and foreign research in biological assets value assessment. Secondly, based on the nature of biological assets, the research aims to find out its value formation and composition. It divides biological assets into four categories:crop assets, forestry assets, livestock assets and fishery assets. Thirdly, based on the biological assets value assessment theory, this study analyzes the application scope and conditions of the existing evaluation methods specific to different category of biological assets. Finally, the live pig assets and economic forest tree asset value evaluation method and its application are analyzed, and the research conclusion is made. The main conclusions are as follows:(1) There are different biological assets value assessment methods based on different perspectives. For the fatten pigs of the pig assets, which is hold for selling, the suitable evaluate method is cost method. For the sow assets of the pig assets, which is hold for future earning ability, the suitable evaluate method is income method.(2) Different biological assets value assessment method is applicable to different categories of biological assets. For crop assets, annual mature crops apply to the market method to be assessed, while the diverse crops apply to the income method. For forestry assets, except for the shelter forest and the forest for special purpose, the timber forest assets apply to the market method, the economic forest assets apply for the income method and the firewood forest assets apply for the cost method. For fishery assets, except breeder fish and the parent fish, most of them apply for the cost method. For livestock assets, most of them apply for market method except for those produce output for human beings which are suitable for income method.(3) Biological assets life cycle of different stage is suitable for different evaluation methods. For economic forest asset, in its young period, it can only choose cost method; in its early growing period and fully growing period, it apply mainly to income method; and in the mature period, it apply for the market method.(4) The enterprise’s economic activities have an impact on the choice of biological assets value assessment methods. Different economic activities tend to choose different value assessment methods. Economic activities based on transfer, investment, merger and liquidation have their own assessment purposes. For evaluation with the purpose of cost amortization, cost method is more appropriate. |
