On The Accounting System And Auditing Of Biological Assets From "Zhangzidao Incident"

With the continuous growth of China’s economy, all kinds of industries are facing the increasingly fierce competition, especially for the agricultural enterprises who are not only face the constant challenge of the market risk, but also take the risk of asset loss brought by the natural disasters. The case of Company B “ Where all the shells went?” that happened last year become a focus topic for both stock market insiders and outsiders talking about.On the one hand it shows the impermanence of the nature, on the other hand it also brought the query of the authenticity of their account report. According to the operating statement of Company B, there were few signs occurred years ago.The so-called "shell" for Compny B, is an important project assets kind in accounting concepts. According to the relevant accounting system, it should be calculated by classified as in the “biological assets” subject. The statistics of the patinopecten vesoensis seed sowing is like covered a sheet of paper to the investors to see clearly by publish announcements and audit reports. It also bring the condition for Biological false assets causing the large proportion of false report in biological assets of Agricultural enterprises.Lots of enterprises were involved in the market-ratting false report cases.Taking Company B case as an entry point, this article compare the difference between the Chinese accounting theory and the United States accounting theory in the classification, Measurement, Impairment, Disclosures aspect of biological assets and auditing with the comparisons. So as to provide a theoretical foundation for the following analysis.With analysissing the basis and the deep of the results on the reason of Company B,I explore the reason of our country agriculture listing Corporation may make false of biological assets in the fifth part, and has put forward some management measures.