Ethical accounting: A field of crops turning into dollar signs symbolizes the commodification of nature in business.

Decoding Agriculture: Are Accounting Standards Influencing Ethical Judgments?

Lena Kashyap in Business & Economy August 2025 • 4 min read.

"A Deep Dive into How Financial Regulations Shape Our Perceptions of Life, Morality, and Corporate Responsibility"

In a world increasingly governed by numbers and financial metrics, it’s easy to overlook the profound influence that accounting practices have on our perceptions of reality. Accounting, far from being a dry and objective discipline, actively shapes how businesses operate, how societies function, and even how we value life itself. This influence begs the question: Are we always aware of the values embedded within accounting standards, and are they always aligned with our ethical compass?

Consider AASB 141, the accounting standard governing agriculture. At first glance, it appears to be a straightforward set of rules for valuing biological assets—living plants and animals. But a closer examination reveals a more complex story, one in which the very act of assigning monetary value to living things can have far-reaching ethical implications. The seemingly innocuous language of accounting can subtly influence our moral judgments and potentially desensitize us to the inherent value of life.

This article delves into a deconstruction of AASB 141, exploring its hidden subtext through the lens of Foucauldian constructs and thematic content analysis. By unpacking the language and assumptions embedded within this standard, we aim to expose the ways in which accounting practices can act as a mechanism of power, shaping not only financial statements but also our ethical understanding of the world.

AASB 141: More Than Just Numbers

Ethical accounting: A field of crops turning into dollar signs symbolizes the commodification of nature in business.

AASB 141’s primary function is to provide guidelines on how to account for biological assets and agricultural produce. This includes everything from livestock and crops to timber and aquaculture. The standard mandates that these assets be measured at fair value, meaning their market price less any costs to sell. While this approach appears objective, it introduces a fundamental challenge: assigning a monetary value to living organisms.

This process raises several ethical concerns:

Commodification of Life: By treating living beings as assets to be measured and valued, the standard risks reducing them to mere commodities, obscuring their intrinsic worth.
Desensitization to Moral Judgement: The act of assigning a monetary value can desensitize individuals to the ethical considerations involved in their treatment and use.
Influence on Corporate Behavior: The standard can influence corporate decision-making, potentially prioritizing financial gain over ethical considerations.

To further explore the ethical dimensions, it's helpful to examine the core terms defined in AASB 141:

The Ethical Balance Sheet: Reassessing Values

This exploration of AASB 141 reveals the subtle yet powerful ways in which accounting standards can shape our ethical judgments. By assigning monetary value to living things, we risk commodifying life and desensitizing ourselves to the moral implications of our actions. It's crucial for businesses, accountants, and society to critically examine the values embedded within accounting practices and strive for a more ethical balance sheet—one that reflects not only financial value but also the inherent worth of life and the well-being of our planet.

About this Article -

This article was crafted using a human-AI hybrid and collaborative approach. AI assisted our team with initial drafting, research insights, identifying key questions, and image generation. Our human editors guided topic selection, defined the angle, structured the content, ensured factual accuracy and relevance, refined the tone, and conducted thorough editing to deliver helpful, high-quality information.See our About page for more information.

This article is based on research published under:

DOI-LINK: 10.5539/ass.v8n11p1, Alternate LINK

Title: Aasb 141 Agriculture: A Deconstruction Using Foucauldian Constructs And Thematic Content Analysis

Subject: General Economics, Econometrics and Finance

Journal: Asian Social Science

Publisher: Canadian Center of Science and Education

Authors: Gregory Kenneth Laing, Ross Kirkham

Published: 2012-08-17

Everything You Need To Know

What is AASB 141 and what does it primarily govern?

AASB 141 is an accounting standard that provides guidelines on how to account for biological assets and agricultural produce. This includes items such as livestock, crops, timber, and aquaculture. The standard mandates that these assets be measured at fair value, which is their market price less any costs to sell.

How does AASB 141 define a 'biological asset,' and why is this definition significant?

AASB 141 defines a biological asset as a living animal or plant. This definition is significant because it means that accounting practices are directly assigning value to living organisms, which raises ethical considerations about commodification and the potential for desensitization toward their intrinsic worth. It is crucial to remember that without these definitions, financial statements would lack clarity. It helps provide decision-useful information to investors in agricultural activities.

What are some of the ethical concerns raised by AASB 141's requirement to measure biological assets at fair value?

Measuring biological assets at fair value raises several ethical concerns. These include the commodification of life, where living beings are reduced to mere assets, desensitization to moral judgment as individuals focus on monetary value rather than ethical treatment, and the potential for undue influence on corporate behavior, prioritizing financial gain over ethical considerations. These issues stem from the challenge of assigning monetary value to living organisms.

In what ways might the application of AASB 141 influence corporate decision-making in the agricultural sector?

The application of AASB 141 can significantly influence corporate decision-making by prioritizing financial gain. Since biological assets are measured at fair value, companies might focus on maximizing the market price of these assets, potentially leading to decisions that overlook ethical considerations related to animal welfare, environmental sustainability, or fair labor practices. The emphasis shifts toward what is measurable and can boost financial performance under the standard.

How does the article suggest we can achieve a more 'ethical balance sheet' when dealing with agricultural accounting standards like AASB 141?

To achieve a more ethical balance sheet, it's crucial for businesses, accountants, and society to critically examine the values embedded within accounting practices such as AASB 141. This involves reassessing how we assign monetary value to living things and striving for an approach that reflects not only financial value but also the inherent worth of life and the well-being of the planet. This means considering the broader ethical implications of accounting decisions and seeking ways to integrate ethical considerations into the accounting process, ensuring that financial statements reflect a holistic view of value.