Accounting Applied to Agribusiness: Evidence and Measurement of Assets

Abstract

Accounting applied to agribusiness has gained prominence in Brazil due to the dynamism, innovation, and significant contribution of this sector to the Brazilian Gross Domestic Product (GDP) in recent years. The unique characteristics of the sector have led to the development of specific accounting treatments. As a result, in 2009, the Accounting Pronouncements Committee (CPC) issued CPC 29, based on IAS 41, which addresses the disclosure and measurement of biological assets. This ensures that information is provided with greater relevance and transparency. The objective of this research was to conduct a detailed analysis of the disclosure and measurement of biological assets presented in the explanatory notes of the business groups listed on B3: JBS, Brasil Foods (BRF), and Marfrig Group, for the base year 2024. The justification for this research lies in the significant role of Brazilian agribusiness and the importance of using accurate information. In this context, there is a need to raise awareness regarding potential issues in the disclosure and measurement of biological assets published in the reports available on B3. The research adopted a qualitative approach, and data collection procedures included bibliographic and documentary research, through which the explanatory notes of the mentioned companies were analyzed with regard to the disclosure and measurement practices used, along with the CPC standards concerning asset accounting. Overall, it is concluded that JBS, BRF, and Marfrig measure their biological assets based on CPC 29. However, some disclosures are not being provided, such as the quantitative data of biological assets by Marfrig and the procedures described in item 49 of CPC 29. These companies are expected to disclose such procedures.