Biological asset is a living animal or plant. International Accounting
Standards Committee (IASC) has published in the International
Financial Reporting Standards (IFRS), the accounting treatment for
biological assets set out in International Accounting Standard 41 (IAS
41) which covers accounting for the agricultural business sector. IAS
41 on biological assets aims to regulate the accounting treatment and
disclosures related to agricultural activity. The accounting treatment
for biological assets has not yet regulated in PSAK (Statement of
Financial Accounting Standards). The study was conducted at PTPN
V Pekanbaru (Persero) which is engaged in oil palm and rubber and
processes the results into crude palm oil (CPO). This study aims to
determine how the accounting treatment for biological assets as well
as comparison of biological assets accounting treatment applied by PT
PTPN V Pekanbaru (Persero) with the accounting treatment for
biological assets based on IAS 41. At the PTPN V biological assets
are measured based on the value of the acquisition and presented at
the balance sheet at book value (cost less accumulated depreciation).
It can be considered that this value is measured so that the value
obtained is more reliable. And to get the reliability of financial
statements, PTPN V has to make biological assets related records.
Keywords: Accounting Treatment, biological assets, IAS 41,
Plantation, PTPN V.