Fair Value of Biological Assets: An Interdisciplinary Methodological Proposal

Abstract

Given the complexity of measuring the fair value of agricultural biological assets, which generally do not have an active market and are dependent on climatic, environmental and biological factors, there is a need for an interdisciplinary view that considers inputs other than economic and accounting. In this sense, the present theoretical essay aims to propose an interdisciplinary methodology to measure the fair value of agricultural biological assets considering also the agronomic factors. As a method, a bibliographic research of an exploratory-descriptive nature was adopted. To support the interdisciplinary methodological proposal, a theoretical framework was developed using the disciplinary lenses of accounting, economics and agronomy, with a focus on agrometeorological modeling. In addition to the methodological proposition, an application was made in the sugarcane sector to demonstrate the behavior and range of the variables. The main contribution of this study is the proposition of an innovative measurement methodology, which considers the agronomic aspects in accounting measurement, which can result in an improvement in the quality of the information, mainly as regards reliability.