Accounting for Biological Assets

This book explores accounting for biological assets under International Accounting Standard (IAS) 41 Agriculture, and explains the recent adjustments introduced by the International Account Standards Board (IASB) which allow firms to choose between cost or revaluation models concerning mature bearer plants.

Identifying the firm and country-level drivers that inform the disclosure and measurement practices of biological assets, this concise guide examines the value relevance of measuring those assets at fair value. It also analyses how firm and country-level drivers explain the differences in the disclosure level and practices used to measure biological assets under IAS 41. Finally, it evaluates whether there is a difference in the relevance of biological assets among the listed firms with high and low disclosure levels on biological assets.

Based on a major international study of a wide selection of firms and country-level drivers, this book is vital for standard setters, stakeholders, students, accountants and auditors who need to understand disclosure and measurement practices of biological assets under IAS 41.

Rute Goncalves is Accounting Supervisor at Centrar, S.A. RAR Group, Portugal. She has previously taught at the University of Porto, Portugal.

Patricia Teixeira Lopes is Associate Dean at Porto Business School, Portugal. She was a research member of INTACCT, a European project on the application of the IAS/IFRS in Member States of the European Union.