Olive Trees in Numbers: How Does SME One Home Farm Manage Its Biological Assets?

\nThis study explores the observation that many companies, particularly small and medium-sized enterprises (SMEs), do not recognize plants as biological assets requiring recognition in their financial statements. SME One Home Farm, a small company involved in organic farming, has not yet recorded olive trees as biological assets in its financial reports. The aim of this research is to analyze the accounting treatment of biological assets at SME One Home Farm, including the recognition, measurement, presentation, and disclosure processes in accordance with PSAK 69, and to compare the conditions before and after the implementation of proper accounting for biological assets. The results indicate that SME One Home Farm has not accounted for the value of its biological assets due to limited accounting knowledge and has only focused on recording sales and minor cash expenditures without considering the value of the plants. As a result, the financial statements do not fully reflect the contribution of biological assets, leading to an increased risk of unforeseen losses. In summary, SME One Home Farm has not met the PSAK No. 69 requirements in its financial reporting concerning the management of biological assets.\n