On Recognition And Measurement Of Consumptive Biological Assets In Agricultural Enterprises

Agricultural economy is an important part of China's market economy,showing the trend of industrialization.Agricultural enterprise is the concentrated embodiment of this development trend.Agricultural listed companies,as the outstanding ones,shoulder the important responsibility of pushing forward the development of agricultural economy and promoting industrial integration and upgrading.However,in recent years,ZONECO,Guangxia Industry,Wanfu Biotechnology and other listed companies suffer from continuous scandals due to abnormal fluctuations in the share prices of listed agricultural companies.Problems mainly focus on the recognition and measurement of biological assets.The periodicity,natural transformation and natural appreciation of biological assets make it difficult to recognize and measure objectively,and the corresponding biological assets accounting standards are under constant discussion and adjustment.Consumptive biological assets are one of them.China's current accounting standards stipulate that consumptive biological assets should be included in current assets inventory items in the balance sheet and measured by cost model.The fair value can only be used as a supplement to the cost model when it is clearly available.However,at present,most of the consumptive biological assets in China are lack of active market,and it takes more time and energy to obtain the fair value,so the cost model is still the main choice of measurement.In order to discuss the recognition and measurement of biological assets,this paper selects Shanghai Zhongyida for case study,hoping to deepen the understanding of biological assets,further understand the possible problems in the application of biological assets accounting standards in China,and try to provide ideas for the further improvement of the standards.This paper first explains the characteristics of consumptive biological assets and then analyzes the meaning and application of different measurement models of consumptive biological assets.By comparing the accounting standards of biological assets at home and abroad,the problems existing in the application of accounting standards of biological assets in China are analyzed and summarized.Next,this article has expounded to Shanghai Zhongyida in the case,analysis of the company in the process of consumptive biological assets recognition and measurement of existing problems,and tries to analyze the reasons behind,found biological assets in our country there are some problems in the application of accounting standards,not fully provide guidance for recognition and measurement of biological assets,caused some financial and social impact.Finally,based on the problems found in the case study,this paper puts forward Suggestions on how to strengthen the biological assets accounting and improve the biological assets accounting standards for Shanghai Zhongyida and relevant government departments.Based on the case study,this paper concludes that there is still room for improvement in China's accounting standards for biological assets and their application in practice.The recognition and measurement of consumable biological assets can be subdivided according to their growth stages.In the early stage of growth,the assets can be classified into longterm assets when there is a lack of active market and weak liquidity.After reaching a certain mature standard and having an active market,the assets can be reconfirmed and converted into inventory.The growth of value before maturity is measured more reliably by the cost model,while the change of value after maturity can be better reflected by the fair value model.The application of this mixed measurement model should be carried out in stages,steps and classifications,aiming at the actual situation of different biological assets.At the same time,agricultural enterprises should strengthen the control of biological assets inventory and make full use of high-tech means for intelligent management.Relevant government departments should also strengthen the cultivation and reserve of professional accounting personnel related to biological assets,and establish a timely and effective reporting and feedback mechanism to promote the optimized management of biological assets of agricultural enterprises.