Research on World Agricultural Economy

Sustainability and Agriculture 5.0 in Practice: Reformulating Agricultural Accounting Standards through the Ecological Fair Value Model

Ana Filipa Roque

Higher Institute of Accounting and Administration of Coimbra‑ISCAC/CBS, Polytechnic University of Coimbra, Quinta Agrícola – Bencanta, 3045‑231 Coimbra, Portugal; Research Centre for Business Sciences (NECE), University of Beira Interior, Estr. do Sineiro 56, 6200‑209 Covilhà, Portugal

DOI: https://doi.org/10.36956/rwae.v7i1.2502

Received: 19 July 2025 | Revised: 12 August 2025 | Accepted: 26 August 2025 | Published Online: 9 January 2026

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Abstract

Agricultural accounting faces unprecedented challenges in light of ecological crises and the digital transformation of Agriculture 5.0. This study critically analyzes the limitations of  NCRF 17 (Portuguese Accounting Standard for Agriculture) and IAS 41 (International Accounting Standard for Agriculture), particularly their inability to integrate environmental externalities and hybrid activities into financial reporting. NCRF 17 and IAS 41 define fair value rules for biological assets but do not account for ecological externalities or hybrid assets, a gap this study addresses. Based on theoretical frameworks such as natural capital theory, critical environmental accounting, and integrated reporting, this research advocates for reforming traditional accounting models. It proposes alternatives that incorporate ecological performance indicators, such as carbon capture, biodiversity conservation, and soil regeneration, into the valuation of biological assets. Through a normative-documentary approach, it demonstrates how emerging technologies (e.g., IoT, drones, AI) can generate traceable and auditable environmental data, promoting a more transparent and sustainability-oriented financial reporting model. This article presents practical models and examines the institutional conditions required to integrate ecological value into agricultural accounting, thereby contributing to the redefinition of accounting's environmental and social roles.

Keywords: Agricultural Accounting; Agriculture 5.0; NCRF 17; Sustainability

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