Research On The Improvement Of Biological Assets Devaluation And Information Disclosure System

The development of agricultural enterprises has an important impact on the agricultural economy.As an important asset of agricultural enterprises,biological assets are unique,leading to differences between the measurement of biological assets and the measurement of ordinary assets.This difference leads to the devaluation of biological assets by agricultural enterprises.A more detailed system is needed.In2006,my country revised the Accounting Standards for Business Enterprises No.5-Biological Assets(hereinafter referred to as the Biological Asset Standards).The overall framework of the standards is relatively scientific and standardized,but the standards are still lacking in the implementation process.The specific supporting measures have caused some agricultural enterprises to fail to correctly handle the accounting of biological assets,resulting in financial scandals such as the "Zhangzi Island Incident",which ultimately affects the development of agricultural enterprises.In this case,it is very necessary to improve the relevant systems of the biological asset standards.Based on the literature review,this article introduces the characteristics of biological assets,and explores the lack of corresponding operable supporting measures in the measurement methods,asset inventory,devaluation and reversal,and information disclosure of my country’s biological asset standards.Then introduced the basic process of the Zhangzidao incident.Through research and analysis,it was found that the inventory area of Zhangzidao was too few and the inventory technology was unreasonable;in terms of impairment processing,the impairment data of Zhangzidao was unreliable,and natural disasters were used as a reduction.Value conditions are questionable;in terms of information disclosure,Zhangzidao’s information disclosure is incomplete,and the growth of biological assets and related risks are not disclosed in a timely manner.These problems have caused serious distortions in the measurement of biological assets,and also proved that the current biological asset standards are in inventory.The lack of implementation rules for impairment and information disclosure makes it easy for companies to manipulate accounting treatments in accordance with their own management purposes.Finally,based on the conclusions of the case study,this article proposes guidelines for improving the inventory,impairment and information disclosure of biological assets.