Fair value accounting of biological assets regarding to IAS 41 and emission reduction revenues obtained by silvicultural assets: the case of Precious Woods Group

Lemberg

UNFU Press

2009

S. 169-178

1 Abb., 8 Tab., 9 Lit. Ang.

Artikel aus einer ZeitschriftUnselbständiges Werk

200162539

Building insights of managerial economics and accounting towards sustainable forest management : Proceedings of the International Symposium organised by the IUFRO Unit 4.05.00 and the Department of Ecological Economics, Ukrainian National Forestry University, S. 169-178

This case study assesses the financial statements of the Precious Woods Group to focus on two new types of revenue streams in forestry business: fair value gains and revenues from emission reduction activities. The Precious Woods Group - one of its core activities is the reforestation of degraded land in Central America - meets the requirements for such a case study by applying the fair value method to assess its forests and by selling CFI's (Carbon Financial Instruments) generated by its forests. With reference to the fair value accounting of biological assets (IAS 41 - Agriculture) and the revenue of emission reduction activities generated by biological assets the financial statement from 2003 till 2006 were evaluated. The study tries to highlight the importance of these two types of revenues for forestry business in the forthcoming years.