Accounting Treatment of Biological Assets for Agricultural Companies in Jember and Bondowoso

Abstract

Application of IAS 41-Agriculture in developed countries contrast with agricultural  entities conditions in developing countries especially for Indonesia. The adoption of IAS 41 makes DSAK-IAI issue PSAK 69 Agriculture intended for agricultural entities so that they can measure and record related biological assets of a company. However, the application of PSAK 69 to agricultural companies also facing problems such as changes in accounting treatment especially for accounting method which are changed form historical value to fair value. The purpose of this study is to provide an overview of accounting treatment of biological asset in Jember plantation companies in state-owned plantation companies in Jember and Bondowoso regencies, namely PTPN 12 and PTPN 11 (PG Pradjekan). The methode used was descriptive qualitative. The researchs showed that differences in biological assets of each company can cause differences in the recording of biological assets. The differences between the two companies are in terms of plant type, plant age and costs incurred in each type of plant. However, in other cases, the accounting treatment of biological assets in PTPN 11 (PG Pradjekan) and PTPN 12 has similarity on recording biological assets at acquisition cost method. This study shows that currently both companies are still  used accounting records with a historical value approach that accumulates all costs incurred from the nursery process until the plants are transformed into yielding crops.