Application of Accounting Standards in the Valuation of Biological Assets: An Analysis of the Poultry Sector in Tungurahua, Ecuador

Priscila Campos-Llerena (), Zonia Chávez-Hernández, Patricia Jiménez-Estrella and César Salazar-Mejía
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Priscila Campos-Llerena: Facultad de Contabilidad y Auditoría, Universidad Técnica de Ambato, Ambato 180207, Ecuador
Zonia Chávez-Hernández: Facultad de Administración de Empresas, Escuela Superior Politécnica de Chimborazo, Riobamba 060106, Ecuador
Patricia Jiménez-Estrella: Facultad de Contabilidad y Auditoría, Universidad Técnica de Ambato, Ambato 180207, Ecuador
César Salazar-Mejía: Facultad de Contabilidad y Auditoría, Universidad Técnica de Ambato, Ambato 180207, Ecuador

JRFM, 2025, vol. 18, issue 9, 1-26

Abstract: This study analyzes the application of International Accounting Standard IAS 41—Agriculture in poultry companies (ISIC A0146.03) in the province of Tungurahua, Ecuador, with the aim of evaluating the degree of regulatory compliance, the level of technical knowledge of accounting managers, and the impact of the lack of homogenization in the presentation of financial statements. The research is based on a quantitative–descriptive approach, through the application of a structured questionnaire to 26 representatives of poultry companies, complemented with the financial analysis of the activity during the period 2010–2024. The results show that the application of IAS 41 is not exhaustive or uniform, and various valuation methods are used that are not always aligned with the fair value approach required by the standard. Likewise, significant heterogeneity in accounting criteria is detected, which limits comparability and reduces the usefulness of financial information for decision-making. Most respondents have general but limited knowledge of the standard, which affects its technical implementation. The study concludes that it is necessary to strengthen specialized accounting training, establish sectoral standardization criteria, and promote regulatory supervision to ensure transparent, coherent, and useful financial information.

Keywords: IAS 41; biological assets; poultry sector; fair value; 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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