Research On The Recognition And Measurement Of Biological Assets Impairment

On the one hand,as the main asset composition of biological assets enterprises,biological assets enterprises have great significance.On the other hand,with the current rapid development of production technology,the links between different industries are becoming more and more close,biological assets as the basis of Means of production impact is no longer just traditional agriculture,forestry,animal husbandry and fishery,but involved in all walks of life.At the same time,biological assets are different from other assets,and in recent years,biological assets enterprises have frequently used the characteristics of biological assets to commit fraud,all of these put forward higher request to the accuracy of biological assets disclosure and the reliability of the recognition and measurement of biological assets.Therefore,there is a more urgent need for the study of biological assets.The case company in this article—Zhangzi Island has made three large impairments on biological assets in 2014,2017,and 2019 in just five or six years,all of which have caused a“big change”in performance.According to the principle of asset impairment,the reason why assets are impaired is because some or all of the assets that were originally recognized and measured no longer meet the essential attributes of the assets.Therefore,the basis for judging whether the asset impairment is appropriate should be based on the essential attributes of the asset.It is understood that in March 2018,the International Accounting Standards Board(IASB)had new understanding and regulations on the essential attributes of assets in the Conceptual framework for Financial Accounting and Reporting(CF).Comprehensive consideration,this article takesZhangzi Island as the entry point,considers the special characteristics of biological assets according to the latest regulations on the essential attributes of assets,and considers how to deal with the impairment of biological assets in combination with the provisions of existing accounting standards.Through the analysis of the biological asset recognition and measurement process of Zhangzi Island,find out problems and think about how to deal with them or how to regulate them.Finally,aiming at the problems of unclear evidence of biological assets impairment of Zhangzi Island,inappropriate measurement attributes,and irregularities in the inventory process,I tried to put forward specific and operable regulatory recommendations based on the actual situation in China,with a view to further Good regulation of the related behaviors of Zhangzi Island's biological assets has enabled stakeholders to gain a better understanding of the impairment of their biological assets,thereby restoring public confidence in Zhangzi Island and even agricultural biological asset companies.In addition,through the study and research of this article,if it can provide reference significance for standard setting,government supervision,etc.,this is the greater significance of the article.