A Case Study On The Recognition And Measurement Of Biological Assets In A Company

China is a big agricultural country.In recent years,agriculture has become the industry and project which is greatly supported and encouraged by the state.It can be said that agriculture is the first condition of all productions,providing various materials for the development of the national economy.From the point of production objects,agriculture is usually divided into crop farming,animal husbandry,forestry,fishery,sideline.Among them,animal husbandry enterprises account for a large proportion of agricultural enterprises.Biological assets are the most important business objects of animal husbandry enterprises.With the promotion of economic integration and the continuous scientific and technological progress,the modern animal husbandry in China has gradually changed from extensive production by individual and small farmers to large-scale intensive and three-dimensional production.At the same time,the introduction of foreign fine animal husbandry breeds and advanced breeding equipment has also effectively promoted the development of modern animal husbandry in China.The productivity of animal husbandry has been greatly improved,which has played an irreplaceable role in China's economic development and in solving the problems concerning agriculture,rural areas and farmers.China has actively formulated agricultural development policies and strategic plans to provide funding and policy support for agricultural development.However,the accounting theory of biological assets closely related to it is still in the growth stage.Because biological assets have the characteristics of liveliness and continuity and the production process is complex and diversified,there are many irregularities in the accounting of biological assets among agricultural enterprises,which may fail to effectively reflect the true condition of agricultural enterprises in China and can not provide reliable information for the policy makers.It is also because of its particularity and complexity and combined with national conditions,agricultural enterprises can explore and summarize some more suitable accounting methods based on their practical experiences and their own characteristics.In this paper,the case analysis method is used to illustrate and analyze the practical operation of the recognition and measurement of commercial laying hens in intensive breeding enterprise A,and in order to reflect the entire process of production and management of the commercial laying hens,the measurement of agricultural products is also slightly involved.It summarizes that there are current problems in the biological assets practice treatment,such as subjective classification,accounting irregularity,improper depreciation methods,etc.;in addition,it makes summary for some shortcomings in accounting standards,including that the classification of biological assets is not detailed;the depreciation policy of biological assets does not match the category of biological assets;the accounting treatment of biological assets disposal is not clear.In terms of the deficiencies above,this paper proposes that enterprises should formulate appropriate accounting policies within the framework of not breaking through the guidelines;the criteria are based on the growth characteristics of biological assets and the realization of economic benefits;Regulate the depreciation policies applicable to each category;the terms and guidelines for the disposal of biological assets should be refined and revised to fully reflect the essence of the business.