Biological assets will undergo a transformation called biological transformation. This transformation causes change both qualitatively and quantitatively. IASC has set the IAS 41 standard of biological assets on Agriculture, which is not yet available on Financial Accounting Standards of Indonesia. The biological transformation causes an accretion, which is an additional value due to physical growth or other natural processes. This research was conducted in PG Pesantren Baru PT Perkebunan Nusantara X which is engaged in the sugar industry that perform the sugarcane production. The purpose of this research is to understand and know the management of the phenomenon of sugarcane accretion, accounting policies related to sugarcane, the comparison with IAS 41, and also the fairness in presenting the sugarcane asset in financial statements. The company carries out the management of the sugarcane accretion since it is one of the indicators that bring the success of sugarcane production. The company recognizes the cost of sugarcane production as an accrued production expense and compares its cost to historical cost.
|Number of pages||14|
|Journal||International Journal of Innovation, Creativity and Change|
|Publication status||Published - 2020|
- Accounting treatment
- Biological assets
- Fairness of presentation
- IAS 41