Discussion on the valuation of biological assets: fair value vs. historical cost

Treball Final de Grau en Finances i Comptabilitat. Codi: FC1049. Curs acadèmic: 2018/2019The international accounting standards harmonization has changed the valuation model in agricultural accounting adopting a fair value model while replacing other techniques such as historical cost. The aim of this research is to analyze both valuation models for biological assets (fair value or historical cost), as well as, which one of them better show the true and fair view of the financial statements. Several empirical studies illustrate that usually fair value presents transparent, accurate and reliable information. This model has a clearly preference in his application despite of the historical cost model is the most used. This accounting method enhance the information because it links the biological transformation with the biological assets. Additionally, fair value accounting model improves the preparation of financial statements and the process of making decisions