Open AccessFair Value as a Measurement Basis: The Case of Agriculture in Portugal
Author(s) -
Maria da Conceição da Costa Marques
Publication year - 2021
Publication title -
european journal of business and management research
Language(s) - English
Resource type - Journals
ISSN - 2507-1076
DOI - 10.24018/ejbmr.2021.6.3.855
Subject(s) - fair value , value (mathematics) , asset (computer security) , process (computing) , market value , historical cost , business , risk analysis (engineering) , fair market value , actuarial science , accounting , computer science , computer security , machine learning , operating system
The entities that operate in the agricultural activity, during the management must make decisions, which depend a lot on the information that is available in the opportune moment. Timely information and reliable accounting records are essential in this process. For the measurement of biological assets at fair value, there must be an active market. The fair value is based on the current location and condition of the asset and will therefore result from its price in the relevant market. There may, however, be advantages and disadvantages in the use of fair value in the measurement of a biological asset, a topic that will develop in this article.