ABSTRACT
The process of the adoption of IFRS by Indonesia still remains controversy in one accounting standard, IAS 41 that regulates the biological assets from corporate agriculture. This standard cannot be considered to accommodate both types of existing biological assets, such as Bearer Biological Assets (BBA) and Consumable Biological Assets (CBA), with different accounting treatment required.
This research aims to compare the accounting behavior of the BBA for between IAS 41 and PSAK 16, PSAK 16 which is the standard used by agricultural enterprises before and while IAS 41 still controversy. This research will provide a conceptual contribution to the accounting standard regulators to be able to take a firm decision on the adoption of the appropriate accounting treatment for biological assets.
The results of this study showed that the BBA is more appropriate to put in the scope of PSAK 16 due to the nature and characteristics inherent in BBA. While CBA still remain under the scope of IAS 41.
