Biological Assets in Agricultural Accounting: A Systematic Review of the Application of IAS 41

Priscila Campos-Llerena (), Mauricio Arias-Pérez, Cecilia Toscano-Morales and Carlos Barreno-Córdova
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Priscila Campos-Llerena: Facultad de Contabilidad y Auditoría, Universidad Técnica de Ambato, Ambato 180207, Ecuador
Mauricio Arias-Pérez: Facultad de Contabilidad y Auditoría, Universidad Técnica de Ambato, Ambato 180207, Ecuador
Cecilia Toscano-Morales: Facultad de Contabilidad y Auditoría, Universidad Técnica de Ambato, Ambato 180207, Ecuador
Carlos Barreno-Córdova: Facultad de Contabilidad y Auditoría, Universidad Técnica de Ambato, Ambato 180207, Ecuador

JRFM, 2025, vol. 18, issue 7, 1-23

Abstract: The valuation of biological assets represents a crucial component for the generation of accounting information, especially in the context of the agricultural sector, where assets subject to continuous transformation processes predominate. This study aims to analyze, through a systematic review of the literature, how the measurement methods established by International Accounting Standard 41 (IAS 41) affect the quality, accuracy, and usefulness of accounting reports. The results show that the correct valuation of biological assets significantly improves strategic and financial decision-making by providing more reliable and representative data on the economic reality of the sector. Finally, the study highlights the main practical challenges in the application of IAS 41, including fair value volatility, the subjectivity of estimates, the limited availability of reliable data, and the need for more flexible accounting frameworks that consider the cultural, climatic, and productive realities of each environment. Based on these findings, the importance of strengthening transparency and accounting disclosure and adapting measurement methods to the particularities of the agricultural sector in order to improve the quality of information and the confidence of external users is highlighted.

Keywords: biological assets; accounting valuation; IAS 41; agricultural sector; agricultural accounting (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2025
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