Factors Affecting the Financial Performance of Biological Asset-Based Companies in Singapore, Thailand, and Indonesia

The International Accounting Standards Board (IASB) published a rule to regulate agricultural activities, named IAS 41: Agriculture. Measurement of agricultural activities based on IAS 41 is stated using fair value which is considered better because it can show that the transformation process immediately represented in the company's financial statements. Information regarding the performance of biological assets can be used by management to increase additional capital because it is a basis consideration for investors. The aim of this study is to examine the influence of the intensity of biological assets, company size, and capital structure on the financial performance of biological asset-based companies in Thailand, Singapore, and Indonesia for the year 2012 to 2018. Data analysis uses descriptive analysis, the classical assumption test, hypothesis testing, and Kruskal Wallis test to analyze the differences of the financial performance. The results indicate that the intensity of biological assets, company size, and capital structure influences the financial performance of biological asset-based companies. Kruskal Wallis test also found that there are significant differences among financial performance in Thailand, Singapore, and Indonesia. Future studies are expected to add independent variables that explain the financial performance of biological asset-based companies such as corporate governance or tax rates.