DEFERRED TAXES IN RANCHING ACTIVITY ORIGINATING FROM EVALUATION OF BIOLOGICAL ASSETS BASED ON FAIR VALUE: A STUDY OF ITS RECGONITION AND REPORING IN THE GREAT RURAL PROPERTIES OF THE STATE OF MATO GROSSO

Abstract

Deferred taxes originate from the differences between the values considered for accounting ends and the values considered for the purpose of taxes: the assets and liabilities of a company. In rural livestock activity, one of the reasons that assets and liabilities for deferred taxes is generated is the recognition and measurement of the biological assets for fair value. Fiscal legislation in Brazil determines that these be included in the taxable result of the period in which the sale of such assets occurs, with difference thus between the values of the assets the liabilities considered when totaling up the accounting and the taxable result. The IAS 12 (Income Taxes) determines that financial statements evidence the taxes deferred by these differences as assets or liabilities. The objective of this study is to analyze the effects of the use of the established criteria for the recognition and measurement of biological assets in relation to deferred taxes and to verify the way these assets and liabilities were dealt with by companies involved in the livestock raising industry in the State of Mato Grosso. To do so, 21 companies were researched, distributed in various municipal districts of the State. The methodology used was exploratory and bibliographical research. It was verified that 33.3% of the livestock companies present the deferred taxes in her balance sheet. Measurement and recognition of the biological assets for fair value change the value of the liabilities for deferred taxes and its recognition increases transparency in the financial statements of agricultural companies by presenting in an ample way the effects that they provoke on assets.