CPC 29 - Biological assets and agricultural products: the importance of measurement criteria and their peculiarities

Abstract

Due to the difficulties that the agricultural sector causes for accounting, technical pronouncements were created to facilitate the communication of accountants from different countries. The present research in its development comes to portray the emergence of the Accounting Pronouncements Committee (CPC), whose function is to prepare the issuance of technical documents in conjunction with the International Accounting Standards for the Brazilian reality. Supporting technical pronouncement CPC 29, which mentions Biological Assets and Agricultural Products where its correlation with International Accounting Standards refers to IAS - 41. Aiming to present the importance of measuring Biological Assets correctly in accordance with CPC 29. The most used measurement methods are Fair Value (Market Value), Discounted Cash Flow and Historic Cost. In this way, the article manages to specify each of these methods and in accordance with CPC 29, the Fair Value is the most used measurement method. Thus, the work emphasizes the importance of properly measuring Biological Assets.