Biological assets: impact of measurement on financial position and performance of SMEs

• Authors: Bohušová Hana , Svoboda Patrik
• Languages of publication: EN

Abstracts

EN

The paper focuses on the possible ways of biological assets measurement in financial reporting of SMEs. According to IFRS for SMEs, the entity uses the fair value model for biological assets with readily determinable fair values, and the cost model for all other biological assets. The nature of all kinds of biological assets differs significantly, especially that of bearer plants and living animals. The authors evaluated the application of the above-mentioned methods to the representatives of both kinds of biological assets (an apple orchard and dairy cows). According to the study the way of biological assets measurement affects the financial position and performance of SMEs in volved in the agricultural sector. The cost model is a more suitable way of measurement for bearer plants reporting, while the fair value measurement is more suitable for living animals in respect to fundamental principles of financial reporting.

Keywords

EN

Biological assets; Bearer plants; Livestock; IFRS for SMEs; Agricultural reporting

• Publisher: Wydawnictwo Naukowe Akademii WSB
• Journal: Forum Scientiae Oeconomia
• Year: 2018
• Issue: Volume 6 (2018) Issue No. 1: Competitiveness of the modern organization: human, ethical and innovative aspects
• Pages: 19-32

Contributors

author

Bohušová Hana

author

Svoboda Patrik

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Identifiers

DOI

10.23762/fso_vol5no1_2