Abstract:

The present paper presents the research on the assessment and capitalization of the biological assets in a forestry ecosystem, as well as the accounting difficulties which appear due to their usage and acknowledgement in the financial statements. The study presents a new approach with comparative aspects of efficiency and credibility of each assessment method, as well as the problem posed by accounting actual values of forestry product. Also, the paper approaches the proposed problem by limiting the theoretical aspects in favor of those directly connected to the accounting practice in accordance with the International Accounting Standards and Romanian accounting regulations. Data investigation and contents analysis of the organization’s main reports on biological assets have been used for issuing this paper. Considering the complexity of calculating the costs for the biological assets, the study concludes that the fair value can be easier applied in accounting than the historical cost, the latter determining a less precise understanding than that of the actual situation of an entity.