Our Biological Assets Measurement Properties Of A Realistic Choice

Agriculture, as we all know, is one of the most important industry in our country, the unique trait of agriculture activity and biological assets make agriculture accounting different from others. At present, there are two standards which applies to biological assets (Self-Generating and Regenerating Assets, SGARA) issued by IASB (IAS41) and AASB (AASB1037), but there is no corresponding accounting standard in china, So, Research into agriculture accounting, especially the measurement attribute of biological assets, have theoretical and practical significance.As an information system in security market, accounting is influenced by many factors, such as economic and legal factors. In the process of information release, as a result, its output is tradeoff between reliability and relevance, it is very the request and result of accounting measure.We also analyzed the comment letters of IASB E65. We concluded that the results have some positive effects on the standards setting of our national agricultural activity.As biological assets have some relationship with their appendix, such as forest and land, they forms a system of assets.The system has non-market service value which make the value of biological asset underestimated by the traditional accounting measurement. Based on the above analysis, we think it is suitable to use different measurement attribute to different biological assets which have different life period and different relationship with their appendix.As for those biological assets which have little relationship with their appendix, for example, animals or one-year-life corps, we think fair value is most appropriate choice; whereas moderate limited-life biological assets which have moderate relationship with their appendix, historical cost maybe the proper way; as for those biological assets which have long-life and close relationship with their appendix, such as forest, we think the proper way of accounting for them is to use different measurement attribute according to their growing period and the way of acquirement.In the appendix, an empirical study has been taken to evaluate the value-relevance of biological assets, but there is no findings to support history cost measurement.In a word, we think that the current measurement option of biological assets is a mixture of all measurement attributes.