Of Biological Assets Accounting Measurement Attribute Research

With the progress of human history, strategic changes has turned traditional and ancient agricultural industry into modern agricultural industry .But in recent years, the agricultural enterprise which lacks the support of funds always becomes ropey .Problem of investing and financing has restricted and delayed the steps of China's agriculture industrialization. As an important part of agricultural enterprise's assets, biological assets whose value is difficult to measure have been ejected from the bank mortgage assets. Therefore, it is a significant subject that agricultural accounting field needs to overcome and resolve to study the measurement of biological assets'value and provide the related and credible accounting information. For promoting the perfection of agriculture accounting theory, investing and financing of agricultural enterprise and development of agricultural economy, it has a very special meaning.China promulgated the new accounting standards on February 15,2006. It gave clear rules to biological assets at the standard level for the first time in Accounting Standards in Enterprises No.5:Biological Assets. Measurement attributes are great substantial difference between our accounting standards and IAS41:Agriculture. For other enterprise assets, biological assets have their life. The measurement becomes fraught because of variability of value. It inevitably causes that the book value may be distant from the true one at measuring date if we continue to use historical cost.It suggested that biological assets should adopt mixed measurement attributes by analyzing basic theory of accounting measurement attributes and combining particularity of biological assets in this paper. Biological assets of different type choose different measurement attributes--the consumptive biological assets and productive biological assets may adopt measurement attribute of historical cost in their initial valuation, but measurement attribute of fair value in their subsequent valuation; public welfare biological assets may always adopt measurement attribute of historical cost. We intended to use different evaluation methods to the measurement of fair value for consumptive biological assets and productive biological assets in diverse agriculture industry and proofed the valuing reliability of biological assets in dissimilar perspective.