Study On Measurement Attributes Of Cow Biological Assets In X Enterprise

Due to its own characteristics,biological assets have become a "unique existence"which is different from other assets of enterprises.In the field of accounting theory.more and more discusses are appearing.In 2001,the International Accounting Standards Board enacted International Accounting Standard No.41-Accounting for the Measurement of Biological Assets-Agriculture"(IAS41);in 2006,China also promulgated "Corporate Accounting Standard No.5-Biological Assets"(CAS5)to explain and regulate issues related to the biological assets,such as its confirming,metering and revealing.IAS41 holds that the approach of measurement should be based on the fair value model,while CAS5 proposes that the measurement of biological assets in China should be based on the principle of prudence and reliability,and the historical cost should be the basis of measurement when the development of domestic agriculture is fully considered.When the development of the agricultural market is stable and mature,and other conditions can be met,the fair value measurement model can be adopted.It has been 14 years since the publication of CAS5,and in 14 years,The development of China is rapid,the level of opening towards outside is more and more in-depth,and economy has stepped into the new normal.Agriculture,especially dairy farming,has always been a key industry of national attention.Since the "Dairy Industry Revitalization Plan" was proposed in 2008,the country has introduced a number of measures to help the dairy industry,aiming to promote the high level,high quality development of dairy farming.In this new phase,the degree of development of China’s market has already changed,should the measurement model of biological assets represented by dairy cows be changed accordingly?This issue still requires us to conduct more in-depth research and discussion.As an important part of the assets of dairy farming enterprises,dairy cows are very special,which share the same characteristics while have natural transformations in value that distinguish them from other biological assets.In this paper,we analyze the actual business of X dairy farming enterprise,which is a highly representative dairy farming enterprise in Hebei Province,with strong strength and prospects.This paper synthesizes the literature analysis and field research methods to conduct a field investigation of the X enterprises,after the field inspection of the X enterprises found that the X dairy farming enterprises now use historical cost measurement methods have many defects and shortcomings,can no longer accurately measure the value of dairy biological assets.Based on the actual situation of the enterprise and the development status of the domestic market,this paper proposes that the fair value attribute should be used for the measurement of dairy assets and explains the necessity and feasibility of optimizing the measurement model.After the optimization of the measurement model of the biological assets of enterprise X,a comparative analysis of the business related to the biological assets of dairy cows occurring in enterprise X in 2017-2020 under the two different measurement models before and after is also carried out.At the same time,this paper also proposes relevant measures to ensure the smooth implementation of the fair value measurement model.The aim of this paper is to provide weakness in the study of the measurement properties of biological assets in X dairy farming enterprises and the high level development of the dairy industry in China.