What is it about?
Agricultural companies need to measure biological assets, such as sugarcane crops, in their financial statements. This study examines how accounting professionals in the Brazilian sugarcane sector perceive fair value measurement for these assets. The research analyzes the views of 32 professionals and identifies different groups according to their profiles and perceptions. The results show that professionals do not share one single view about the standard. Some see fair value accounting as useful for improving information, and others see practical difficulties in its application. The study also shows that professionals working in regions with different levels of concentration in the sugarcane production chain perceive the standard in different ways. In plain terms, the article shows that fair value accounting for biological assets is technically relevant, but its application depends on professional judgment, sector conditions and practical guidance.
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Why is it important?
This work is relevant because fair value measurement affects how agricultural companies report biological assets, but the practical application of the standard remains complex. The article gives visibility to the perspective of accounting professionals who apply these rules in the sugarcane sector. This perspective helps standard setters, auditors, managers and researchers understand where the main difficulties arise. The study also points to the need for clearer practical guidance, since the evidence shows different interpretations and no full consensus among professionals.
Perspectives
This publication reflects my interest in accounting standards as practices that depend on professional judgment, sector conditions and institutional acceptance. The measurement of biological assets requires more than technical compliance with a standard. It also requires professionals to interpret biological, economic and market information under uncertainty. The article shows that fair value accounting in agribusiness becomes clearer when the perceptions of those who apply the standard are considered.
PhD. Rafael Todescato Cavalheiro
Universidade Federal da Grande Dourados
Read the Original
This page is a summary of: Fair Value Accounting: measurements of biological assets in praxis and perspectives of accounting professionals in the Brazilian sugarcane sector, Enfoque Reflexão Contábil, December 2018, Universidade Estadual de Maringa,
DOI: 10.4025/enfoque.v37i4.40983.
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