Fair value accounting still represents a topic of significant interest between users and creators of financial information. The term ‘fair value accounting’ refers to the practice of using available market information in order to estimate the price of assets if it were to be sold, or the cost to settle a liability. It is generally accepted that fair value accounting provides more relevant information for users of financial reports and for decision-makers and improves transparency, especially in situations when the markets in which the assets are traded are highly liquid. During the period of changes in the countries in transition, it is important to make proper asset valuation, because if assets of participants on the market are not fair value presented, it could make difficult to understand their true position on the market in relation to other participants. In this article we will look back on fair value accounting in agriculture in accordance with IAS-41. In particular, we will pay attention to the importance of measurement and significance of the fair value accounting of biological assets.

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