TITLE:
Comparative Analysis between the Value of Biological Assets and Agricultural Products, Using Market Approaches and Income Approaches in the Post PSAK 69 Agriculture at Palm Oil Plantation
AUTHORS:
Hery Sanukri Munte, Khaira Amalia Fachrudin, Rina Br Bukit
KEYWORDS:
Biological Assets, Fair Value, Agricultural Product, PSAK 69
JOURNAL NAME:
Open Journal of Business and Management,
Vol.7 No.3,
May
24,
2019
ABSTRACT: Property of palm oil plantation is income producing property in which oil
palm is the most important commodity which has the biggest contribution to the
creation of values. Palm oil plants are biological assets which experience growth
transformation and need a long period from seedlings to productive plants.
Therefore, it is necessary to have the measurement which can indicate the value
of the property appropriately according to its contribution. Cost model is
usually used in presenting financial statement which is referred to PSAK 16 on
fixed asset that does not reflect the real quality of asset since it is only
recorded its cost. PSAK 69 agriculture applies fair value to respond to some
uniqueness of the agricultural characteristics of oil palm. The objective of
the research was to analyze the difference between the value of biological
assets and agricultural products by using market and income approach. The
research used quantitative case study approach which was aim to assess oil palm
plants at private estate in Kabupaten Langkat.
Direct comparison method was used for market approach while Discounted Cash
Flow (DCF) was used for income approach. The data were gathered through
internal report analysis and semi-structured interviews. The result of the
research showed that the value of biological
assets in pre-PSAK 69 was IDR.121,140,000,000 while in the post-PSAK 69 the
recorded value consisted of two parts: fair value of bearer plants and fair
value of agricultural products. Through market approach, it was found that fair
value of bearer plants was IDR.118,083,410,741 and fair value of agricultural
products was IDR.3,056,589,259. Through income approach, it was found that fair
value of bearer plants was IDR.110,354,000,000 and fair value of agricultural
products was IDR.10,786,000,000. The conclusion was that the difference
in fair value of agricultural products, assessed by using market approach and
by using income approach, was 252.9%.