Standardization Of Biological Assets Accounting

With the advancement of global economic integration, modern agricultural production activities are gradually showing a trend of large-scale, industrialization and internationalization. As advanced representatives and important force in the development of agriculture, there is no doubt that agricultural enterprises contribute a great power to the agricultural economy development of our country, but some companies use the particularity of biological assets in which fish in troubled waters,fraud, causing very bad influence. In order to standardize the accounting, accounting statements and disclosure related to agricultural activities, in 2000, the international accounting standards committee has officially launched the International Accounting Standard 41- Agriculture, at this point, there is a unified accounting standard related to agriculture, the concept of biological assets was first put forward and biological assets accounting was separated from “inventory” and “ fixed assets”. In the context of the international convergence of accounting standards, in 2006, the ministry of finance published Accounting Standards for Enterprises No. 5- Biological assets which started from January 1, 2007, in the listed companies, and gradually extended to the large and medium-sized enterprises. From early implementation, some relevant scholars have analyzed the principles, and the results shown that biological assets standards still exist some problems which need to be explored and improved, and its implementation was not ideal in some related enterprises. Today, the criterion has been implemented for eight years, whether these problems has been solve and how the standardization of biological assets accounting, are still what we concerns.In this paper, we investigated about 30 agricultural class(generalized) the biological assets of listed companies accounting situation based on rule of biological assets, the results showed that biological assets standards specification implementation is not ideal in the relevant enterprises, mainly displays in following several aspects:(1) the classification of the biological assets and confirm are in chaos,and part of the companies have some problems in biological assets recognition;(2)the confirmation of some special asset like mushrooms, fungus and others are confused;(3) information disclosure related to biological assets is not standard,inadequate, including biological assets for special purpose and from special sources,all kinds of physical quantity of biological assets, the accumulated depreciation of all kinds of the productive biological assets, all kinds of book value of the biological asset,etc.There are some rezones for above problems, mainly about:(1) biological assets standards specification are unclear, including biological assets related specification file is not clear and specification requirements of the code of biological assets for categories are unclear or incomplete, etc.(2) the external agencies had a poorregulation, that is to say the auditors always turned a blind eye, other institutions over trust in the audit report of numbness, and related legal penalties for accounting are irregularities, etc.For the above problem and reasons, this paper puts forward the following suggestions:(1) clear biological asset class standard, the division standard of biological asset types for accurate and detailed definition, and forced to be explicitly disclosed in the notes to the financial;(2) expanding the scope of the biological assets accounting, mainly include mushrooms, black fungus and other edible fungi in biological assets accounting scope;(3) biological assets accounting specific measures,namely to biological assets accounting specific specification and operational guidelines, and uses the method of case analysis on accounting process to give detailed guidance;(4) enterprises should strictly follow the biological assets accounting standards, and through the way of consultation and discussion to help to improve and perfect principles;(5) strengthen the supervision of relevant departments and law enforcement, and play its regulatory role for the enterprise accounting behavior, strengthen the training of relevant personnel and management, enhance their sense of responsibility and consciousness of supervision.I hope that in the joint efforts of enterprise, formulate departments, regulators and related scholars, agricultural enterprises and agricultural economy can get more support and achieve rapid, scientific and healthy development.