The Research On The Selection And Application Of Accounting Measurement Mode Of Live Pig Assets

In recent years, China has continued to put efforts to support agricultural development, especially in the hog industry which occupies an important position in agriculture. As we all know, China has become one of the pig breeding and pork output superpower in the world. Pig assets accounting is a special and important problem in the field of agricultural accounting; especially enterprise should how to measure this huge asset? In fact, while pig enterprise is increasing investment and companies and individuals are joining this group, it is appearing so many drawbacks in the existing pig assets measurement mode, which will affect the correct measurement of the pig asset. Therefore, in the context of China integrated into the global economy, how we reflect pig assets value through accounting measurement and increase the accuracy and comparability to promote the development of the pig assets measurement study has important meaning.The first chapter introduces the basic theory of the pig assets accounting measurement. It is divided into two parts. The first part described the concepts of pig assets accounting measurement, mainly in the definition and basic stages of the pig accounting measurement. The second part described the basic theory of accounting measurement of pig assets, mainly in the cost view, economic resource view, future economic profits view.In the second chapter, it analyses the characteristic of the Chinese pig asset accounting measurement by considering various factors. Firstly, the measurement of the pig assets is only a relatively accurate result. Due to the constraints of cost-effective, we should consider whether what received is more than the paid in the process of measuring pig assets; due to the relatively frequent changes in the value and the constraints of technical conditions, it is more difficult to determine the increment of the pig assets and measure accurately; due to the complexity of the measurement process of the pig assets, focusing on the correlation or reliability will also affect the accuracy of the measurement results. Secondly, the choice of pig assets accounting measurement mode is multiple. On the process of pigs’growth and value change, because of the multiple pig assets classes and varied pigs morphology, bi-directional changes of the assets value, double affection of natural and market, as well as different accounting objectives, we should select multiple modes. Finally, measuring the pig assets is a complicated process due to special growth cycle of the pig assets, uncertain future inflow of economic benefits and continuous follow-up expenditures.The third chapter analyzes the characteristics and limitations of the existing pig assets accounting measurement mode. On one hand, by using the historical cost measurement mode, it can avoid profits manipulation, reduce accounting costs and risk, provide objective information, stronger its implementation; by using the market price-oriented fair value measurement mode, it can improve comparability and correlation, reflects the true value of the assets. However, on the other hand, when using the historical cost measurement mode, it was not accurately reflect asset values changes, and it is not comparable between the revenues and expenses; when using the market price-oriented fair value measurement mode, it will also has the problem of low reliability of information, weak interoperability and how to measure under imperfect market and the artificial termination of pig asset life situations. Therefore, it is not possible to use historical cost or market price-oriented fair value singly.Considering the purpose of holding pig assets and specificity and the limitations of existing accounting measurement modes, the paper boldly proposed the use of multiple, mixed-measurement model to measure the pig assets. In addition to the previously mentioned two measurement model, there should be the present value-driven fair value measurement mode, net realizable value measurement mode and "historical cost+natural value-added" measurement mode. Present value-driven fair value mode is applicable when there does not exist an active pig asset market and fair value can not be reliably achieved; Net realizable value measurement mode is applied to pig assets which will be sold;"Historical cost+value-added" measurement mode combines the advantages of historical cost and fair value, it considers the reliability of the information, respects the historical cost when assets made, reflects the bi-directional value changes and the real-time information of biological assets value.The fifth chapter selected pigs accounting measurement mode under the main line of pig growth and development stages and considering the purpose of holding pig assets, the particularity of pig assets measurement, the accounting measurement stage of the biological assets. On the first pig growth stage-the suckling pig and nursery pigs, the second stage-finishers and replacement gilt mode, we should mainly choose historical cost. On the third pig growth stage-boar and sow mode, we should mainly choose "historical cost+natural value-added" mode, if conditions permits, we can also choose the market price-oriented, the present mode-derived fair value measurements on the third stage. On the fattening pigs Stage, the assets was held by the purpose of selling and should carry-over costs through historical cost.When pig asset is prepared to sell, asset is measured by realizable net value or cost which is lower.