Management of Agricultural Companies in Portugal: How the Use of Fair Value can Promote Their Improvement

This article explores the use of fair value as a basis for measuring biological assets in the agricultural sector, focusing on the Portuguese context. It highlights the critical role of timely and accurate information in the decision-making processes of entities involved in agricultural activities. The adoption of international standards such as IAS 41 and IPSAS 27 has introduced fair value measurement, providing an alternative to historical cost. While fair value is relevant and reflects current market conditions, challenges remain such as market availability, valuation subjectivity and volatility. This study examines the implications of fair value for public and private entities, detailing the regulatory framework, methodological approaches and practical applications. It also discusses the advantages, disadvantages and disclosure requirements associated with this accounting approach, highlighting its impact on transparency, comparability and reliability in financial reporting.