Importance International cooperation requires a transition to International Financial Reporting Standards (IFRS) and development of new and the elaboration of previously existing accounting regulations and methodological guidelines. In agriculture, this gave rise to the emergence of a new accounting category, i.e. biological assets, which combine plants and animals in one group of accounting objects. Objectives The aim of the article is to substantiate the theoretical principles and develop practical recommendations on improving the methodological tools for accounting and evaluation of biological assets and agricultural products under IFRS. The tasks include but not limited to developing an algorithm to account for biological assets at fair value. Methods To achieve the objectives, we applied general scientific methods like historical and systems approaches, inductive and deductive methods, comparison, the economic and statistical methods, systematization and generalization of data. Results We propose an algorithm for biological assets accounting at fair value, which is based on the use of special classification. Furthermore, we offer a method for determining the fair value of feed stuff based on the market price for livestock products, the proportion of feed stuff costs in the cost structure of production, the share of fodder in the structure of animal feed, and other elements. Conclusions and Relevance The lack of uniform accounting principles and rules for biological assets based on fair value hampers the transition to International Financial Reporting Standards. It is necessary to work out certain measures to adapt the requirements of IAS 41 Agriculture. These measures should rest on the basic principles of fair value measurement of biological assets that are disclosed in the study.
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