CHALLENGES IN FINANCIAL REPORTING ABOUT BIOLOGICAL ASSETS

Bojan Savić; Nataša Obradović

doi:10.5937/Oditor2001007S

Authors

Bojan Savić University of Belgrade, Faculty of Agriculture, Zemun, Serbia Author
Nataša Obradović University of Belgrade, Faculty of Agriculture, Zemun, Serbia Author

DOI:

https://doi.org/10.5937/Oditor2001007S

Keywords:

biological assets, valuation, fair value, IFRS, financial reporting

Abstract

Biological assets are one of the characteristic positions in the financial statements of the entities in the domain of agro sectors. Its accounting treatment is accompanied by numerous challenges, notably because of the need to measure fair value accordance with IAS 41 - Agriculture, but also because biological assets can be very heterogenous in terms of race, life cycle stages, health status, productivity and more. In order to review and assess the situation in the financial reporting of biological assets in the Republic of Serbia, we conducted a survey of the financial reports of the entities in the field of agriculture and agribusiness. The paper highlights the key constraints that arise in relation to the financial reporting on biological assets, which can seriously impair the value relevance of financial informations.

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