Measuring and Valuation of Biological Assets: A Research Study

Purpose: The aim of the article is to identify the factors influencing the choice of measurement and valuation of biological assets of two selected voivodships in Poland. Design/Methodology/Approach: To achieve this goal, a survey was carried out in the Dolnośląskie and Wielkopolskie voivodships in the period from January 2018 to January 2020. The survey consisted of the following parts: part I - record and short description of agricultural production (10 questions), part II - identification of macroeconomic factors influencing the valuation of biological assets (2 questions), part III - assessment of available methods of biological assets valuation (14 questions). As a result of the survey, the next number of responses was obtained: 100 questionnaires from Lower Silesia voivodeship, 100 questionnaires from Wielkopolska voivodeship. Findings: The most important macroeconomic factors include, fuel and electricity prices, weather factors. These factors were significant regardless of the organizational and legal form or the generated revenues. On the other hand, the microeconomic factors that have the greatest impact on the choice of the method of measurement and valuation of biological assets include the financial result in companies keeping accounting records in the form of full accounting, the risk of agricultural activity in any organizational and legal form, as well as any other type of economic records. Practical Implications: The article identifies factors influencing the choice of methods for the valuation of biological assets in farms run in Poland in two selected voivodeships. These studies form the basis for further research related to the development of a method for the valuation of biological assets. Originality/Value: The results of the survey and theoretical considerations contained in the article complement the existing research in accounting, including agricultural accounting.