Disclosure of fair value adjustment in DVA by companies exploiting biological assets

Under CPC 29, biological assets ceased to be valued at historical cost to be valued at fair value. The measurement of these assets affects the results of the company, and this variation must be evidenced in the Statement of Added Value (SAV). This paper aimed to analyze how the companies that exploit biological assets disclosure the gains and losses arising from the measurement of these items in the SAV in the years 2010 to 2016. It was identified that not all companies used the fair value to measurement its biological assets. A total of 174 financial statements were analyzed, and in 61.50% fair value was used, but there was no evidence of its variation in the SAV, and at 3.74% the fair value was not used. In the others, the information was presented as a specific line in the SAV, as other revenues or as inputs purchased from third parties (4.81%, 17.65% and 12.30%, respectively). It was not possible to identify determining patterns in the way that the fair value adjustment is evidenced by the companies, not even among companies operating in the same sector or had their statements audited by the same audit firm.