Open AccessA Fair Value Model for Bearer Biological Assets in Promoting Corporate Governance: A Proposal
Author(s) -
Kamaruzzaman Muhammad,
Erlane K Ghani
Publication year - 2013
Publication title -
journal of agricultural studies
Language(s) - English
Resource type - Journals
ISSN - 2166-0379
DOI - 10.5296/jas.v2i1.4630
Subject(s) - corporate governance , value (mathematics) , fair value , business , accounting , cash flow , economics , actuarial science , finance , computer science , machine learning
This paper discusses IAS 41 Agriculture with specific focus on accounting for bearer biological assets in Malaysia. It presents the concerns raised by various parties on the applicability of IAS 41 on bearer biological assets particularly on the use of present value of future net cash flows model to determine the fair value of certain category of biological assets. This paper posits that there is a way to develop a fair value model through identifying factors that influence the fair value of bearer biological assets. The results of the proposed study would hopefully assist in the development of an alternative fair value model in valuing bearer biological assets and subsequently lead to good corporate governance specifically on the improving the qualitative characteristic of financial information.