Research On Appraisal Methods Of Biological Asset In China

With the improvement of market-based economy system and fast development of the agricultural industrialization, businesses relating to biological asset such as transaction, leases, mortgages and insurances are getting larger. Also, the demand for present value of biological asset is becoming stronger. However, biological assets which are different from Industrial Products have wide application. The values of biological asset change all the time as the changes of biological life trajectories. Thus, the theory and methods of value appraisal need to be based on the theory and methods of the assets appraisal itself and its creation and improvement. For the specialization of biological asset, how to choose the value appraisal theory to be the foundation and how to select the appropriate critical methods become new tasks of the present assets appraisal.The central theme of this dissertation is to research and analyze the appraisal methods of biological asset by starting from the formation of biological asset. First of all, the dissertation reviewed in details about biological asset progress from both dometical and international perspectives. Secondly,analysis of special formation of biological asset which are based on its specialization. This step laid the academic foundation for appraising futher biological asset appraisal. Thirdly, this dissertation put a detailed analysis on the field of applications and conditions by implementing the current biological asset appraisal theories. At the same time, new methods have been suggested. Finally, the dissertation provides a reference on the choice of appraisal methods.The main conclusions of the dissertation are as follows:1. Draw the conclusion that biological asset should be combined utility theory of value with labor theory of value. By analyzing the formation of the value of biological asset, we can know that the value of biological asset are formed by the two parts, one is the labor input, which is the same with the general non-biological asset. The other is the natural proliferation, which is the characteristic of biological asset natural productivity. This feature determines the change of value of biological asset is a two-way aspects (showed the value of biological asset increase and decrease at different stages). If the appraisal theory of biological asset is only based on the labor theory of value, and the characteristics of biological asset are ingoring and the part of the natural proliferation are missing, it will underestimate its value generally. If the appraisal only based on the utility theory of value, although two factors of the formation of the value of biological asset( Human and natural productivity) are considered, but due to the utility is consumer subjective tasets,different consumers will lead to the tasets variability.so,the value will variated largerly.As a result, it is better to combine two theories together, follows the life trajectory of biological asset, the "true" value of biological asset can be accurate, objective, impartial and comprehensive reflected.2. Obtain the applicable scope of different appraisal methods in the biological asset valuation. Through the analysis of various appraisal methods application conditions, market method is mainly used in the assets appraisal of flowers and livestock. The most important application of market method is to select the similar references and set the appropriate adjustment coefficients. Return method is mainly applicable to the productive biological assets valuation. The key of using return method is to ensure the amount of expected profit, the discount rate and the earnings period of appraisal assets. Cost method is mainly applied to the assets valuation of infancy biological assets. For the methods that cannot be utilised for the biological asset, such as market method and return method, it is suggested to choose the cost method to determine its value.3. Propose a new method to appraisal the biological asset. There are some flaws to appraisal the biological assets if market method, cost method and return method are used. It is because that the nature of biological asset was not reflected. So, there should be a new method to adapt to the characteristics of biological asset, which is Bio-economic Model.4. Offer some references on the choices of appraisal methods. Conclusions can be drew through comparative analysis of various appraisal procedures as following:If there is an active market in agricultural assets, the market method can be used, such as flowers, forestry assets, livestock,and poultry assets. Return method can be used to appraisal the value of forage, economic forest assets,Bearer biological asset and parent fish biological assets. Bio-economic model method can be used to appraisal the value of corp assets, consumable forestry assets, consumable livestock and poultry assets and fish assets.