Research On The Measurement Of Biological Assets Of Listed Companies

Agriculture is the foundation of people's livelihood.As the representative of agricultural enterprises,the activities of listed agricultural companies are of great concern from investors.However,there are still many problems existing in listed agricultural enterprises.In the area of balance management and financial fraud,especially in the area of biological assets where problems are raising increasingly frequently.There are many difficulties in the measurement of biological assets due to their particularity,especially the selection of measurement attributes and the provision of impairment has always been a key problem for scholars to pay attention to.ZONECO was one of the leading companies in agricultural enterprises,which used to be titled Fortress on the Sea.However,problems due to poor assets management have occurred many times in recent years like scallops fleeing and starving to death or even collective collapse.The problems in ZONECO's poor biological assets accounting are the major influence factors behind those issues.In this essay I made in-depth analyses on ZONECO with case analyses method,and found out the existing problems from the aspects of measurement method selection,initial measurement,subsequent measurement and impairment provision.The following problems existing in the measurement of biological assets in ZONECO could be roughly divided into four main aspects: first,the measurement model selected cannot effectively reflect the change in the value of biological assets;second,there is false behavior and reliability in the initial measurement;third,the amortization of the sea area cost in subsequent measurement is not objective;fourth,there are unreasonable impairment provisions existing in the provision of the impairment of biological assets.There are many reasons for these problems which are in the market,internal control and supervision.We can deny that there are objective reasons and subjective reasons.It is precisely these reasons that together cause the problems of biological assets measurement of listed companies in China.These influencing factors are mainly concentrated in the following five aspects: first,the low activity of the biological asset market makes it difficult for fair value measurement to make better use of its advantages;second,the imperfect inventory management leads to the risk of large-scale impairment of the enterprise;third,companies have incentives for earnings management;fourth,Abnormal value changes of biological assets;fifth,the insufficient supervision of various departments has given enterprises loopholes in the measurement of biological assets.Through in-depth analysis and research in this article,it is found that there are still many problems in the measurement of biological assets in China,especially the application of the fair value measurement model has a lot of room for development.The measurement of biological assets needs to be continuously improved from various aspects,including measurement the choice of model,the control in the measurement process,the improvement of the professional skills of financial personnel and the improvement of the internal control of related enterprises.Focusing on the fore-said problems,the following suggestions are made for improving the measurement of biological assets of listed agricultural companies in China: first,the fair value measurement should be appropriately used in the measurement process to better reflect the value changes of biological assets;second,enterprises should pay attention to the rationality of cost allocation in the measurement process;third,companies should pay attention to continuously improve the financial personnel's professional ability and fair value model learning of biological asset measurement;fourth,people improve internal control and standardize biological asset measurement from the source.