Master Zhalelkanova N

East Kazakhstan State University S.Amanzholov

Biological assets in fishing industry

Nowadays there is reformation of accounting in Republic of Kazakhstan in accordance with generally accepted principles, assumptions and rules, set out in the International Financial Reporting Standards (IFRS). 

In this regard a promising way to improve the accounting of expenses for  fish farming production are the practical application of the provisions of IAS 41 "Agriculture" in the fish farms. In particular IAS 41 Agriculture synthesized as the management of the biological transformation. In fish farming biotransformation consists of the processes of growth, degeneration, reproduction fish seed production and fish farming, which resulted  qualitative or quantitative changes in a biological asset.

Biological asset

One can get products in fish farming by separation from the biological asset (production of eggs from fish-producing) or by stopping the further biotransformation of a biological asset, ie end of its life and existence as an object of production (catch of grown market fish ).

Pattern 1. The nature and results of biotransformation in fish farming

During the practical use of IAS 41 there is a need for a theoretical justification of biological assets and agricultural production in fish farming, as well as the development of methods of their fair value, which will provide the conditions for a meaningful analysis of the resource potential and production management by fishery products.

In accordance with IAS 41 "Agriculture", fish stocks are biological assets in fish farming (bot-spawn, fry, one year old fry) and marketable fish, commercial products include fingerlings and marketable fish. This approach does not fully reflect the organizational and technological features of the fishery and does not allow an economically sound reflection in the accounting of biological assets and received commodity products in fish farming.

It is proposed, based on the organizational and technological features of fish farming to highlight biological assets and commercial products listed in table 1.

Table 1. Biological assets in fish and their products

Biological assets	Commercial products
Uterine	Caviar
Fish producers
Larvae	fingerlings
fry
yearlings
yearlings	commercial fish
Two-years
Fish in the fattening

Allocation of these biological assets in fish farming will economically sound reflection in accounting resulting from their biotransformation products.

For effective management of biological assets and processes of these assets` changes are of particular importance to substantiate their assessment, accounting and income, expenditures and financial results from the biotransformation of these objects. All this requires a science-based classification and identification of biological assets in the system of management of agriculture according to certain criteria grouping.

In the account of biological assets grouping of biological assets in fish farming involves at the following classification criteria:

- duration of the use of and getting agricultural products and / or additional biological assets (short-term or current and non-current). Biological assets which can produce agricultural products and / or additional biological assets, bringing in another way economic benefits over a period exceeding 12 months are long-term, all other is short-term;

- maturity (mature and immature). Mature are the biological biological assets, which are able to produce agricultural products regularly and / or additional biological assets;

- the ability to get multiple agricultural products and / or additional biological assets ( fruiting and consumed ) . Bearer biological assets are able to produce agricultural products repeatedly and / or additional biological assets(fruiting and consumed). Consumable biological assets are capable to produce agricultural products once, then they cease to exist.

Management of the biological transformation , that is contributing the quantitative and qualitative changes of biological assets , means the creation of the necessary institutional , technical and other conditions for its implementation. From the standpoint of accounting, management , in this case involves the measurement, evaluation and control of qualitative and quantitative indicators of biotransformation consumed fruit-bearing fruiting consumed consumed fruit-bearing fruiting Mature ( fish producers) Immature ( repairmen young) Mature ( fingerlings , fish fattening ) immature (larvae , fry , yearlings , two-year- ) Biolo giches Kieu assets Short (larvae , fry fingerlings , yearlings , fish fattening ) Long-term ( fish - producers) , Heifer consumed