Study On Biological Assets Accouting In Agricultural Enterprises

As the basic industry of china, the agriculture plays a very important role in social economy development. Its character is that the natural grow of the living animals and plants intertwined with the reproduction of economy. This result the complexity and particularity of the accounting confirmation, calculation and report for the agriculture activity. Biological assets are one of main production elements in people's agriculture activity. It is the most important economy resource of the agriculture enterprise and the study on it is the core points of the agricultural accounting. With the attendance of diversification of the business from the modern enterprises, some difficulty is unavoidable in the accounting operation. To be in accordance with the international accounting principles and referring to the Accounting Standards for Enterprises No.41-agriculture, our country formulated the Accounting Standards for Enterprises No.5-Biological Assets, and start to carry out from January 1,2007 among the agricultural enterprises listed in share market and also encourage other agricultural enterprises to follow. It could plan an important role on regulating the accounting of biological assets and improving the quality of the accounting information. These essays mainly try to discuss the accounting issues of the Biological Assets accounting with the method of comparative analysis and also refer to the relative stipulations of our country's accounting standard in china.Firstly, the essay gave the background of the topic choice, its purpose and significance, current status and studying method as well as the study result on this topic in china and foreign countries. Secondly, it gave exposition on assets, Biological Asset's explanation, character and classification. Thirdly, it expounded the confirmation and accounting theories for biological assets, and analyzed the characters of the biological assets as well as its confirming and accounting theories. It thoroughly discussed the accounting operation issues of the biological assets from the aspects of confirmation and accounting. It comparatively analyzed the international accounting principles and relative stipulations on biological asset's confirmation and accounting. Through the further analysis the factors on accounting formulas choice, such like accounting target, accounting information quality and so on, gave reconsideration on the tradition happened cost accounting mode and Fair value measurement mode. Referring the international accounting principle and Australia's advanced experience on biological assets accounting, it gave a feasible accounting mode according to china's reality and pointed out that china should perfect its agricultural market environment and cultivate high quality accountant for agricultural enterprises. After analyzing the factors which affect the confirming and accounting mode on the biological assets accounting, it mentioned new confirming and accounting mode for Chinese biological assets. Meanwhile, Chinese biological assets accounting method both show international principles and also have Chinese characteristics, this is decided by Chinese agricultural enterprise's character and its own environment. We should take feasible measures to promote the carryout of the biological assets standard and improve its accounting.