The concept of Fair Value for agricultural products was introduced in the framework
of accounting practices in 2010 in a process of convergence with international accounting
standards put in place by Brazil. Managing agricultural production according to the
principles of this concept may imply changes in business practice, because while previously
gains or losses were recognized only when the product was sold, in this new approach
they are recognized during the administration of the agricultural asset itself. In
order to search for empirical evidence that would allow advancing this discussion,
this study investigated a sugarcane company in the interior of the State of Sao Paulo.
This research aims to verify if the implementation of Fair Value as a way of recognizing
agricultural costs causes changes in the company's decision making. Based on a qualitative
study and using a research method based on a single case study, the research applied
non-parametric tests in the evaluation of the evaluated company's financial statements.
The results obtained showed evidence that the Fair Value impacted the company's economic
and financial indicators, reflecting changes in its decision making.
