Research Of Biological Asset’s Accounting Measurement Model

Our country is an agricultural country whose biological asset resources are variety. Biological assets are basic means of production of agricultural enterprises. They not only have the characteristics of general assets, but also have natural characteristics of the "biological transformation". The international accounting standards board prefers for the measurement of the biological asset fair value measurement model. But our country agriculture accounting regulations prefer to the historical cost model. Therefore, choose which model to measure the value of biological assets needs to be further researched.At present, the overseas research focuses on the establishment of agricultural accounting standard and accounting system. Their debate focuses on the historical cost measurement model or the fair value measurement model. And the research of biological assets in China is still in its infancy. Some scholars put forward with the method of mixed measurement model. But there is no sufficient argumentation to specific applications.This paper is on the basis of the related research results at home and abroad. Firstly, it elaborates the theoretical basis of biological assets accounting measurement model. Secondly, it introduces the characteristics and limitations of historical cost measurement and fair value measurement. By discussing the influence factors of biological assets measurement model selection and combining with China’s national conditions, it puts forward to our country that single measurement model can’t objectively reflect the real value of the biological asset. It points out the rationality of using the mixed measurement model and the application of mixed measurement model ideas. Firstly, it should adopt the fair value measurement model. When the conditions not exist, it should concern the characteristics of biological assets and their different growth stages. Then it can use the historical cost method fair value method and to measure the biological assets value. Then this paper list an enterprise which sell pigs for example.Finally, it pointes out that the advantage of mixed measurement model by comparing historical cost method fair value method with Mixed measurement model.