Abstract [eng] |
These days, activity of agricultural enterprises is difficult not only because agricultural risk determinants, such as climatic conditions, specific production processes, a variety of technological novelties, pests or diseases, but also because of the quite unique financial accounting of owned and managed biological assets. Biological assets are objects of agricultural companies, such as living plants or animals, which have untypical transformation features. The features include but are not limited to biological assets’ growth, reproduction and aging as well as harvesting of agricultural production. In order to more accurately reflect the biological impact of changes in the value of biological assets, the company should use one of a few available biological asset valuation methods, which are governed by international or national accounting standards. It is the acquisition (production) cost or fair value. Which one of biological assets’ valuation methods is used has a significant impact not only towards current, but also for the future performance results of the company. |