Living assets are those that continue to undergo biological transformation, accounting treatment also contributes in the process. IAS 41 prescribes the accounting treatment, presentation financial statements and disclosures related to agricultural activity. Often there is a conflict of interest between the owner and management in managing their biological assets that have these unique characteristics. Firm Size is one way to improve a company's financial performance which is also influenced by the treatment of accounting for biological assets. This study aims to analyse the implementation of accounting for biological assets in Indonesia and Malaysia. The method used is explanatory research with secondary data sources, namely the financial statements of agricultural companies in the two countries that are published on the stock exchange. Tests are carried out with an empirical approach. The results showed that there were no differences in the accounting implications of biological assets in both countries. Based on the test results it can be concluded that the accounting implications of biological assets, using the fair value approach with biological asset intensity and firm size, had no impact on financial performance both in Indonesia and in Malaysia.
Key words: Biological Asset, Biological Intensity, Firm Size, Financial Performance.
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