On The Depreciation Of Consumptive Biological Assets Under Heavy Assets Operation Mode ——A Case Study Of Muyuan Food Stuff Co.,Ltd.

China is the largest pig production and pork consumption country in the world.Pork is also the main meat food consumed by urban and rural residents in China.Pork and food together constitute the main food for Chinese residents.Since the opening of pig market in 1985,the price of pig has been fluctuating periodically,commonly known as "pig cycle".In 2018,the industry suffered the double effects of "price drop" and "African swine fever",which made the whole industry fall into a downturn in the short term.Since the second half of 2019,the pig supply will be in a state of tight supply,which makes the price of pork "soar" all the way,resulting in the phenomenon of "meat is expensive and hurting people",which is expected to further stimulate the expansion of large-scale pig breeding in China.China’s pig farming mainly includes free-range and large-scale farming,and free-range farming still accounts for the majority.However,with the development of society,pig-breeding will inevitably change from free-range to large-scale farming.At present,there are several large-scale pig breeding companies in the market.The main breeding models are the "company + farmer" medium-scale decentralized breeding model represented by Wen’s Group,also known as the "asset-light operation model" and the Muyuan Group as the representative The integrated self-education and self-supporting self-support model is also called the "asset-heavy operation model".Each of the two operating models has advantages and disadvantages.However,the "heavy asset operation model" represented by the Muyuan Group controls the quality of its entire industrial chain and is more in line with the current development needs of Chinese residents for food safety.More attention.For most animal husbandry enterprises,the occurrence of natural disasters such as epidemics is the primary basis for the impairment of their consumptive biological assets.When there is clear evidence that due to the change of market demand or the risk of natural disasters such as epidemic disease and flood,the consumptive biological assets owned by the enterprise may be impaired,then the enterprise shall accrue the impairment loss for its consumptive biological assets.The specific method is to recognize the impairment of the part of the net realizable value of the consumptive biological assets that is lower than the book value of the enterprise,and the enterprise can turn back the amount of the impairment part according to the actual situation after the factors affecting the impairment weaken or disappear.There are many practical considerations in the actual operation of the impairment of consumptive biological assets,which will have a series of more important impact on the financial statements.There is no doubt about its importance,but its judgment standard has always been a puzzle for us.Based on the fact that muyuan stock has never accrued the impairment of consumptive biological assets,this paper mainly uses case study,literature study,comparative analysis and other methods,combined with the theoretical basis of "accounting goal theory","prudence principle","future economic interests view","supply and demand theory","asset specificity theory","asset pricing theory",etc.,from the perspective of "enterprise" Accounting Standards No.5-biological assets,accounting standards for Business Enterprises No.8-asset impairment,accounting information quality requirements and industry analogy,etc.,analyzed the characteristics of consumptive biological assets of muyuan stock under the condition of "heavy asset operation mode",and studied the risk of disease and pig price fluctuation Based on the actual situation of muyuan,this paper puts forward the conditions,standards,procedures and economic consequences of the impairment of the consumptive biological assets in the pig industry.It will do a little to fill the gap in the research of the impairment of the consumptive biological assets in the pig breeding industry,and hope to help guide enterprises to produce more accounting information The quantity required financial report can help investors better identify and reflect risks and improve the quality of financial report of listed companies.