Importance The application of the generally recognized principles and accounting practices set out in the International Financial Reporting Standards (IFRS) will increase the investment attractiveness of the agricultural organizations. The use of estimation of accounting objects at fair value will facilitate this process. But, at the same time, it causes the greatest difficulties, because this type of evaluation is new to the Russian realty. Objectives Our article aims to increase the tangibility of assessment and to improve the accuracy of balance sheet through the use of the assessment of short-term biological assets of the dairy cattle breeding at their fair value. The task is to identify the deficiencies of the current system of the valuation of price of animals for breeding and fattening, to calculate their fair value and to compare the obtained value with the carrying value amount. Methods In our paper, we apply the methods of economic analysis: comparison of the relative values; accounting methods: assessment and the balance generalization. Results We substantiated the necessity of the use of fair value in the evaluation of the short-term biological assets of dairy cattle breeding, and also calculated fair value of animals for breeding and fattening, using a market-based approach by the example of five farms of the Krasnodar Krai. We proposed the accounts to reflect the increases in the value of the value of animals to the fair value, and also developed a form of the primary accounting document "Act of the estimation of animals for breeding and fattening at the fair value". We also provided the correspondence of accounts to reflect the animals in the accounting accounts at fair value. Conclusions and Relevance As a result of the calculations, the value of the animals for breeding and fattening was higher than their carrying value, which results in an increase of the balance sheet, the current liquidity ratio, and the coefficient of availability of working capital. This will improve the accuracy of the balance sheet, the investment attractiveness of an organization, and it will lead to an increase of the collateral value of current assets, and to the growth of the insurance sums when insuring animals.
Keywords: short-term biological assets, dairy cattle, breeding, assessment, fair value
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