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Publication Detailed Description
Exploring the value relevance of biological assets and bearer plants: an analysis with IAS 41 Revision
Journal Title
Custos e @gronegocio Online
Year (definitive publication)
2022
Language
English
Country
Brazil
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Abstract
The purpose of this paper is to explore whether a relation exists between share market
valuation and the accounting information about bearer plants and biological assets. The focus
is supported in the most recent revision of IAS 41 Agriculture. This revision formally
introduced the concept of bearer plants, moved them from biological assets to PP&E, and
changed their prior measurement by the fair value model to the cost model. Our approach
explores the usefulness of these changes under a valuation market approach. Our analysis
settles that there is a positive association between share prices and agricultural-related assets.
Overall, our results suggest that biological assets are value relevant and reveal that bearer
plants are incrementally value relevant after IAS 41 revision. Besides, we envisage that these
conclusions are driven by companies in countries where the value add of agriculture, forestry,
and fishing as a percentage of the country’s GDP is lower.
Acknowledgements
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Keywords
Biological assets,IAS/IFRS,European Union,Value relevance
Fields of Science and Technology Classification
- Economics and Business - Social Sciences
Funding Records
| Funding Reference | Funding Entity |
|---|---|
| UIDB/00315/2020 | Fundação para a Ciência e a Tecnologia |
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