International Accounting Standard for Biological Assets in the Poultry Sector of Tungurahua Ecuador: A Descriptive and Natural Language Processing Study

Abstract

International Accounting Standard (IAS) 41 for Biological Assets establishes guidelines for accounting for live assets and agricultural products, which in this case was taken into account for an analysis in the poultry industry. This standard seeks to standardize accounting processes with the measurement of biological assets at fair value; in the poultry industry, proper accounting is a problem, due to the biological and economic nature of birds, in addition to the measurement of their growth and the valuation of assets at various stages of their development. IAS 41 enables poultry firms to properly recognize the revenues and expenses associated with these assets, improves financial transparency, and facilitates business decisions based on truthful and accurate data. This descriptive study analyzed the application of IAS 41 in the poultry sector in Ecuador and evaluated the economic and fiscal situation of the companies. Natural language processing (NLP) techniques were used to analyze interviews and textual documents in order to extract information that contributes to improve accounting practices, compliance with international regulations, identify patterns and generate topics related to the implementation of IAS 41. It was found that this standard represents an important framework for accounting for biological assets and that it influences the management of poultry operations by helping companies to optimize production and solve operational efficiency problems; this in turn facilitates trust among entrepreneurs, clients, investors and regulators.

Received: 2 November 2024 / Accepted: 4 January 2025 / Published: 11 January 2025