Author(s)

Hery Sanukri Munte¹, Khaira Amalia Fachrudin², Rina Br Bukit²

¹Property Management and Valuation Master Programme, Universitas Sumatera Utara, Jalan Almamater Kampus USU, Medan, Indonesia.
²Faculty of Economic and Business, Universitas Sumatera Utara, Jalan TM Hanafiah Kampus USU, Medan, Indonesia.

Property of palm oil plantation is income producing property in which oil palm is the most important commodity which has the biggest contribution to the creation of values. Palm oil plants are biological assets which experience growth transformation and need a long period from seedlings to productive plants. Therefore, it is necessary to have the measurement which can indicate the value of the property appropriately according to its contribution. Cost model is usually used in presenting financial statement which is referred to PSAK 16 on fixed asset that does not reflect the real quality of asset since it is only recorded its cost. PSAK 69 agriculture applies fair value to respond to some uniqueness of the agricultural characteristics of oil palm. The objective of the research was to analyze the difference between the value of biological assets and agricultural products by using market and income approach. The research used quantitative case study approach which was aim to assess oil palm plants at private estate in Kabupaten Langkat. Direct comparison method was used for market approach while Discounted Cash Flow (DCF) was used for income approach. The data were gathered through internal report analysis and semi-structured interviews. The result of the research showed that the value of biological assets in pre-PSAK 69 was IDR.121,140,000,000 while in the post-PSAK 69 the recorded value consisted of two parts: fair value of bearer plants and fair value of agricultural products. Through market approach, it was found that fair value of bearer plants was IDR.118,083,410,741 and fair value of agricultural products was IDR.3,056,589,259. Through income approach, it was found that fair value of bearer plants was IDR.110,354,000,000 and fair value of agricultural products was IDR.10,786,000,000. The conclusion was that the difference in fair value of agricultural products, assessed by using market approach and by using income approach, was 252.9%.

Biological Assets, Fair Value, Agricultural Product, PSAK 69

Munte, H. , Fachrudin, K. and Bukit, R. (2019) Comparative Analysis between the Value of Biological Assets and Agricultural Products, Using Market Approaches and Income Approaches in the Post PSAK 69 Agriculture at Palm Oil Plantation. Open Journal of Business and Management, 7, 1144-1152. doi: 10.4236/ojbm.2019.73079.