FAIR VALUE OF QURBAN LIVESTOCK UNDER PSAK 113: A CASE STUDY AHEAD OF EID AL-ADHA IN AMBON CITY

Abstract

This study sets out to examine how the fair value of qurban livestock, treated as biological assets under Statement of Financial Accounting Standards (PSAK) 113 on Accounting for Biological Assets, is applied by breeders raising qurban livestock in Ambon City, contrasting the period before Eid al-Adha with the days immediately preceding it. A descriptive qualitative case-study design was adopted, focused on two cased studied in Hitu Village and Tulehu who were considered representative of the wider population. Evidence was gathered through direct field observation, in-depth interviews, and a review of market price records spanning Maret to June 2025. The findings point to a marked run-up in livestock prices, somewhere between 50 and 75 percent above ordinary levels as Eid al-Adha approaches, a movement that, from an accounting standpoint, ought to be recorded as a gain on the change in fair value of biological assets within the income statement. In practice, however, none of the breeders surveyed in Ambon City had adopted fair-value-based measurement as PSAK 113 requires. This shortfall traces back to weak accounting literacy, an absence of support from relevant government agencies, and limited breeder access to active market price benchmarks. The study concludes by calling for accounting education programs geared toward biological assets for local breeders, alongside a simplified recording system consistent with PSAK 113.