Tests performed with the datasample used in this study provided empirical evidence
that fair value of biological assets does neither disclose significant differences in profits,
nor increase volatility, nor bring about lower profitability and accounting manipulation.
However, significant differences were found inmedian values of assets and revenues.
None of the alleged drawbacks for the agricultural sector were empirically confirmed by
this research. On the other hand, fair valuation avoids the unaffordable complexities of
cost calculation for biological assets for the predominant small holdings in the
agricultural sector. Therefore, fair value for biological assets seems to be a useful
simple valuation method that will help to get a more widespread use of accounting in
the agricultural sector.