Fair value: analysis of measurement methods applicable for fixed biological assets

The IAS 41 inserted the minimum requirements for accounting and presentation of the biological assets in the financial statements into the international accountability scenario. The same thing happened in Brazil with the CPC 29, which states that biological assets should be measured at a fair value where it can be reliably measured. Thus, this article was aimed at analyzing the methods of measurement of the fixed biological assets based. The research is exploratory, from the application of hypothetical data to an orange grove, which shows the general characteristics of most fruit trees, serving as reference for other biological assets of the same nature. The article analyzes the application of techniques for measuring the fair value determined by IAS 41 and FRS 13, with the presentation of three methods of measuring the fixed biological assets, As a result of this research, it is emphasized that the criterion for the measurement of fair value is applicable to the sector in a theoretical point of view. However, the measurement of these assets is dependent on estimates of price and production, which, in many cases, involves previews with statistics and subjective data, which explain the difficulty encountered in the sector for the measurement of biological assets.