Research Article

Fair Value as a Measurement Basis: The Case of Agriculture in Portugal

Maria da Conceicao da Costa Marques
ISCAC Coimbra Business School, Portugal
* Corresponding author
DOI icon 10.24018/ejbmr.2021.6.3.855

Read Counter
876

Downloads
1152

Citations

Share

Article Sidebar

Submitted 2021-04-18
Published 2021-06-02

Read counter = 876 times

Table of Contents

Article Main Content

The entities that operate in the agricultural activity, during the management must make decisions, which depend a lot on the information that is available in the opportune moment. Timely information and reliable accounting records are essential in this process. For the measurement of biological assets at fair value, there must be an active market. The fair value is based on the current location and condition of the asset and will therefore result from its price in the relevant market. There may, however, be advantages and disadvantages in the use of fair value in the measurement of a biological asset, a topic that will develop in this article.

Keywords: Agriculture, biological assets, agricultural product, fair value, decision making, accounting, IPSAS 27, IAS 41

References

  1. Karakelleoğlu, M. I. & Gönen, S. (2017). An Insight on Accounting for Agricultural Transactions: Recent Perception of IAS 41 With Applications. Ecoforum, Volume 6, Issue 1(10), 2017.
     Google Scholar
  2. Orbán, I., Dékan, T. & Kiss, A. (2015). Measurement of agricultural activities according to the International Financial Reporting Standards. Procedia Economics and Finance 32 (2015) 777–783.
     Google Scholar
  3. Marques, M. C. (2018). Public Accounting and IPSAS in Portugal: The Accounting Standardization System for Public Administrations. Journal of Modern Accounting and Auditing, April 2018, Vol. 14, No. 4, 153-164 - doi: 10.17265/1548-6583/2018.04.001.
     Google Scholar
  4. Quivy, Raymond; Champenhoudt, Luc Van, Manual de Investigação em Ciências Sociais, Lisboa, Edições Gradiva, 2005.
     Google Scholar
  5. Garcia, L.; Quek, F. (1997). Qualitative research in information systems: time to be subjective?, In: Lee, A. S.; Liebenau, J.; Degross, J. I. (ed.) Information systems and qualitative research, London, UK: Chapman & Hall, pp. 444-465.
     Google Scholar
  6. Godoy, A. S. (1995). Pesquisa qualitativa - tipos fundamentais. Revista de Administração de Empresas, 35(3), 20-29.
     Google Scholar
  7. Bogdan, R., Biklen, S., (1994). Investigação Qualitativa em Educação – uma introdução à teoria e aos métodos. Porto: Porto Editora.
     Google Scholar
  8. Adwana, S., Alaa Alhaj-Ismail, A. & Girardonec, C. (2020). Fair value accounting and value relevance of equity book value and net income for European financial firms during the crisis. Journal of International Accounting, Auditing and Taxation, Volume 39, June 2020, 100320, https://doi.org/10.1016/j.intaccaudtax.2020.100320.
     Google Scholar
  9. Marra, A. (2018). The Pros and Cons of Fair Value Accounting in a Globalized Economy: A Never Ending Debate. Journal of Accounting, Auditing and Finance 31(4):582-591 · October 2016 with 282 Reads. DOI: 10.1177/0148558X16667316.
     Google Scholar
  10. Comissão de Normalização Contabilística (2015). Norma Contabilística e de Relato Financeiro 17 – Agricultura.
     Google Scholar
  11. Comissão de Normalização Contabilística (2015). Norma de Contabilidade Pública 11 – Agricultura.
     Google Scholar
  12. Comissão de Normalização Contabilística (2015). Sistema de Normalização Contabilística para as Administrações Públicas (SNC.AP).
     Google Scholar
  13. Epstein, B.J., Mirza, A.A. (2003). IAS 2003: Interpretation and Application of International Accounting Standards. Jon Wiley&Sons Inc.
     Google Scholar
  14. Herborn, K., Herborn, J. (2006). International Accounting Standard (IAS) 41: What Are the Implications for Reporting Forest Assets. Small-scale Forest Economics, Management and Policy, 5 (2).
     Google Scholar
  15. IAS 41 Agriculture - Recognition and Measurement of Biological Assets and Agricultural Produce in accordance with IAS 41. Retrieved from http://www.ifrs.org/Current-Projects/Project-Archive/IAS-41-Agriculture-Recognition-and-Measurement-of-Biological-Assets-andAgricultural-Produce-in-ac/Pages/IAS-41-Agriculture--Recognition-and-Measurement-of-Biological-Assets-and-AgriculturalProduce-in-ac.aspx. accessed June 2018.
     Google Scholar
  16. IAS 41 Agriculture Retrieved from http://www.iasplus.com/en/standards/ias/ias41.
     Google Scholar
  17. IPSASB (2011). IPSAS 27 – Agriculture.
     Google Scholar
  18. Orbán Mrs. Tamás Dékán, I., (2013). Reporting companies’ performance – in respect of the International Financial Reporting Standards. Applied Studies in Agribusiness and Commerce – APSTRACT. Retrieved from https://ageconsearch.umn.edu/record/187516/files/15_Orban.pdf. Accessed December 2018.
     Google Scholar
  19. Decreto-Lei nº 192/2015 – aprova o Sistema de Normalização contabilística para as Administrações Públicas (SNC-AP). Available in http://www.cnc.min-financas.pt/pdf/SNC_AP/DL_192_2015_11Set_SNCAP.pdf.
     Google Scholar