The Cow Biological Assets Accounting Measurement Model Selection In Agriculture And Husbandry Enterprise

Cows’biological assets in agriculture and husbandry enterprises secure an unreplaceable place in this certain field in China. With the development of social economy, dairy products are becoming an important part of daily food for many families, which makes the dairy producers a pillar industry, especially in North China. More large dairy producers need more ranches, and the selection of cow biological assets accounting measurement model is cropping up accordingly. According to the provision, Accounting Standards for Enterprises No.5—Biological Assets, released by Ministry of Finance in2006, agriculture and husbandry enterprises shall use the historical cost measurement model; International Accounting Standards No.41for cows biological assets accounting measurement model shall adopt the fair value accounting measurement model. Hence the importance of choosing a proper accounting measurement model for enterprises.This paper focuses on the selection of cow biological assets accounting measurement model for agriculture and husbandry enterprises. Firstly, the author discusses some relative theories concerning the topic. The author makes a full introduction of cow biological assets in biological characteristics and the law of value change, as cows are accounted in the form of life. Meanwhile, the paper discusses three accounting measurement models altogether. Secondly, the author compares the development of cow biological assets accounting measurement model at home and abroad, and analyses the advantages and disadvantages of historical cost model and fair value model after discussion. Thirdly, the author put forwards the idea of composite model applied in cow biological assets accounting measurement model in agriculture and husbandry enterprises. Feasibility and necessity of such a composite model are discussed; detailed introduction of its application in initial, subsequent and final measurement is also related. Finally, the author makes a comprehensive analysis of specific measure of safeguard in applying the composite accounting measurement model in four ways:completion of biological assets regulations, information collection of cow biological assets, quality of accouters, and guidance of the government and industry association.