ESTIMATING FAIR VALUE OF BIOLOGICAL ASSETS IN BEEF RAISING AS A MEANS OF FINANCIAL RECOVERY ON THE BASIS OF DATA OF BOOK ACCOUNTING OF AGRICULTURAL ORGANIZATIONS

Abstract

The article deals with the problem of forming fair value of biological assets in beef raising. The author proves the necessity to estimate biological assets in fair value. The author studies methods of calculating fair value of assets. Also the author proves the necessity to perfect accounting analytical data in the period of bankruptcy of agricultural organizations. To minimize risks of bankruptcy approaches to forming data of financial accounts are suggested. The author supposes that it is necessary to apply principles of giving information of dynamic balance if we introduce financial recovery and if we introduce bankruptcy proceeding it is necessary to apply static balance. Estimating fair value of biological assets in beef raising from the standpoint of dynamic balance is suggested to perform using a discounted cash flow method and from the standpoint of static balance using a rate of return method. The article presents a proprietary methodology of estimating fair value of animals taking into account their individual peculiarities, namely their fleshing. When applying a rate of return method, calculation of losses of consumer properties of beef in beef raising is suggested to perform taking into account the factor of loss of consumer properties of beef, it reflects correlation between muscle mass and fat mass in meat.