Sustainability and Agriculture 5.0 in Practice: Reformulating Agricultural Accounting Standards through the Ecological Fair Value Model

Abstract

Agricultural accounting faces unprecedented challenges in light of ecological crises and the digital transformation of Agriculture 5.0. This study critically analyzes the limitations of NCRF 17 (Portuguese Accounting Standard for Agriculture) and IAS 41 (International Accounting Standard for Agriculture), particularly their inability to integrate environmental externalities and hybrid activities into financial reporting. NCRF 17 and IAS 41 define fair value rules for biological assets but do not account for ecological externalities or hybrid assets, a gap this study addresses. Based on theoretical frameworks such as natural capital theory, critical environmental accounting, and integrated reporting, this research advocates for reforming traditional accounting models. It proposes alternatives that incorporate ecological performance indicators, such as carbon capture, biodiversity conservation, and soil re-generation, into the valuation of biological assets. Through a normative-documentary approach, it demonstrates how emerging technologies (e.g., IoT, drones, AI) can generate traceable and auditable environmental data, promoting a more transparent and sustainability-oriented financial reporting model. This article presents practical models and examines the institutional conditions required to integrate ecological value into agricultural account-ing, thereby contributing to the redefinition of accounting's environmental and social roles.