Study On Accounting Recognition And Value Measurement Of Dairy Cattle

As a sort of new assets, Biological Assets were listed into new CAS. Biological Assets belong to basic production means and necessary assets of the agricultural corporation. It is very important about how to recognize,measure and disclose. Above all, measurement is most important and nuclear.Accounting recognition is the core of accounting information disclosure about it is true or not. When choice the different measurement method to deal with the different assets, the fairness of measurement method becomes the center of value measurement. Therefore, while choice a measurement must consider authenticity, reliability and fairness of accounting data.With the time flying, Biological Assets will change accordingly. Therefore, we must consider its vital sign to measure the value of Biological Assets. The dairy cattle is one of Biological Assets, we must consider the vital sign of dairy cattle. So that measurement method of dairy cattle will be different from non-living assets. The paper thinks that fair value is the best choice.The new CAS state: take historical cost to measure the initial value of Biological Assets. If there are enough evidences indicating that fair value is credible, we should choice fair value model. But the statement had no concrete description. So, the paper choice the fair value to measure the value of cattle to provide a new thought.With the development of economy environment and the improvement about accounting theory, fair value will be inevitably trend of future value measurement.