Understanding fair value measurement practices on biological asset: A study within agricultural sectors
List of Authors
  • Nurshahirah Salehuddin , Suraiya Ibrahim

Keyword
  • Biological Asset, Fair Value Measurement, Harumanis Mango, Minimum Production Cost, Smart Farming, Social Elements

Abstract
  • Numerous nations have developed farming production in an attempt to turn a benefit from agriculture's role in economic development. Agricultural accounting is a minor standard with a wide scope of application that has a significant effect on agricultural biological assets. Considering calculating fair value measurement is fairly difficult, the majority of businesses could not adhere to it and lacked the necessary preparedness. This study sought to better understand the current practices of fair value measures for biological assets in the agricultural sector of Malaysia with reference to IAS41. The objective of this study is to find out the current practices of fair value measurement and also to investigate whether minimum production cost and social elements will influence fair value measurement. Furthermore, this study applies Technology Acceptance Model (TAM) to identify farmers' acceptance of the usage of smart farming analytic data. In this context, a biological asset is any living plant or animal that an organization owns. Biological assets are usually calculated at fair value minus selling costs. A qualitative case study approach will be employed in this study with a focus on gaining an understanding of fair value measurement practices on biological assets. This study's data validity can be accessed via triangulation and thematic analysis. In terms of biological assets, the Harumanis Mango was chosen as the study's sample.

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