Research On Biological Asset Accounting Standard And Related Questions

Agriculture can support the construction and development of our nationaleconomy. Biological asset is the main production object and factor in the agriculturalenterprises. It is also the important part of assets in the agricultural enterprises. Withthe continuous development of domestic and foreign trade, the constant improvementof the financial environment, and the rising number of agricultural companies, thedemand that capital market needs for agricultural accounting information is alsoincreasing. However, due to the particularity of biological assets，most agriculturallisted companies cannot provide detailed information about biological assets in theirfinancial report.2006biological assets accounting standards in our country has beenimplemented for more than seven years. The implementation situation and existproblems need explore and improve. At the same time, the improvement of theagricultural enterprises’ scale leads to the increasing pollutions of biological assets.Therefore, this article has important significance for the biological assets accountingin the agricultural enterprises, the improvement of accounting theory in our countryand the sustainable development of the economy in agricultural enterprises.Starting from the theory, the article introduces the basic concept of biologicalassets and accounting basic theory. In application, the article compares IAS41andCAS5, analyzes the biological assets’ application situation in35agricultural listedcompanies, and points out the necessity of researching the environmental problems ofbiological assets. The first emphasis of this article is analyzing the biological assets’application situation in35agricultural listed companies. Depending on the analyzingresults of biological assets’ recognition, measurement and disclosure, the articlesummarizes the problems of biological assets accounting standards in the parts ofclassification, recognition, measurement and disclosure. The article also provides thereason why the disclosure information of biological assets is not standard. The secondemphasis of this article is introducing the environmental pollution caused bybiological assets, putting forward the concept of environmental cost of biologicalassets, analyzing the accounting method of environmental cost of biological assets,and pointing out the problems in the implementations of environmental cost ofbiological assets. Then, according to the problems in the two key points; the articleprovides corresponding suggestions. Finally, the author selects a large-scale pig farms as an analysis example to support the views outlined in the essay and concludes withprospects and projections.