Research On Measurement Of Biological Assets

Agriculture is an important part of China's national economy.In 2017,the No.1 central document pointed out to promote the structural reform of agricultural in supply side,optimize the industrial structure of products,adjust food planting structure,develop aquaculture industry and strengthen the drive of scientific and technological innovation in agriculture.Only by that,our country can enhance the sustainable development capacity of agriculture.By combing the punishment reports issued by the SFC in 2000-2016 years on agricultural listed companies,we can found that there is a common phenomenon in these companies to conduct financial fraud through biological assets.On the other hand,it can also be found that the disclosed accounting information about biological assets is lack of comparability through the arrangement of the agricultural listed companies'measurement of biological assets in 2016.At present,the accounting system related to agriculture in China,especially about biological assets,does not match the state's importance attached to the development of agriculture.There is a big gap between CAS and international standards in biological assets,which doesn't conform to the convergence with international accounting standards.In 2014,the 1ASB decided to take bearer plants as property,plant and equipment in accordance with the requirements in IAS 16 instead of IAS41.However,the guideline of how to deal with the accounting of biological assets in China is still based on CAS5 which was published in 2007.With the implementation of CAS39 in 2014,the adoption of fair value in the measurement of biological assets has become an inevitable trend.At the moment,there are many problems in the measurement of the biological assets in listed companies.Based on the accounting standards and the division of expendable biological assets,productive biological assets,non-profit biological assets,crops,trees,livestock and aquaculture,this paper researches the measurement of biological assets.It is mainly concerned with the study of the initial and subsequent measurement of biological assets,especially the depreciation and devaluation in subsequent measurement.Then,this paper uses the case of ZONECO to make a concrete analysis of existing problems in the measurement of biological assets impairment.This paper is expected to be able to help solve the difficult problems of listed companies about how to use the historical cost measurement reasonably,such as the choice of depreciation method and the judgment of signs of impairment,etc.,and analyze the difficulties of subsequent measurement using fair value and how to calculate the fair value of various biological assets.Finally,this paper studies the present situation of subsequent measurement of biological assets in listed companies,discusses the motivation of listed companies in China to use cost models to measure biological assets,and discusses the necessity and possibility of promoting fair value in measurement of biological assets.It is expected that this paper can provide new ideas for the measurement of biological assets in our country and promote the application of fair value in the measurement of biological assets.