Please use this identifier to cite or link to this item:
Title: Fair value: model proposal for the dairy sector
Author: Oliveira, Jonas
Azevedo, Graça
Santos, Cláudia
Vasconcelos, Sandra
Keywords: Regulation, Financial reporting, Fair value, Biological assets, Dairy sector
Issue Date: 2015
Publisher: Emerald Group Publishing Limited
Abstract: Purpose – The purpose of this paper is twofold. First, it intends to assess the level of comparability of the fair valuebased valuation criteria for biological assets of Portuguese dairy farms after the adoption of the Portuguese Accounting Standardization System. Second, it presents an innovative valuation model to assess the fair value of dairy herds. Design/methodology/approach – The paper conducts a multiple case study at dairy farms in the central region of Portugal which had adopted the new Accounting Standardization System. Data were captured through interviews to assess how dairy farms were using the new valuation criteria required by this recent accounting frame of reference. A proposal for a model to measure fair value is presented. Findings – Main findings indicate that market values for dairy production animals are inconsistent, reducing financial information comparability levels. To solve these problems, the authors propose a new model to assess fair value based on the net present value (NPV) of future cash-flows. This is a possible method to measure bovines that are in a breeding stage and it will assure the comparability of financial statements among dairy farms. Research limitations/implications – The study is confined to one case study and one country, not allowing generalization. originality/value – Results indicate the need to harmonize one possible method for measuring cattle that are in a breeding stage. In order to overcome these shortcomings, a model was designed to calculate the fair value of dairy production based on the NPV of future economic benefits.
Peer review: yes
ISSN: 0002-1466
Publisher Version: DOI 10.1108/AFR-04-2014-0008
Appears in Collections:ISCA-UA - Artigos

Files in This Item:
File Description SizeFormat 
Agricultural Finance Review.pdfPreprint447.08 kBAdobe PDFView/Open

Formato BibTex MendeleyEndnote Degois 

Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.