30 MEASUREMENT PALM OIL AS BIOLOGICAL ASSETS USING PSAK 69 THAT ADOPT IAS 41 Audrey M. Siahaan 1 , Victor H. Sianipar 2 , Oloan Simanjuntak 3 1 Faculty Economic and Business, Universitas HKBP Nommensen Medan Indonesia Email: audreysiahaan@uhn.ac.id 2 Faculty Economic and Business, Universitas HKBP Nommensen Medan Indonesia Email: victorsianipar@uhn.ac.id 3 Faculty Economic and Business, Universitas HKBP Nommensen Medan Indonesia Email: oloansimanjuntak@uhn.ac.id Abstract. IAI has just implemented PSAK 69 which is the adoption of IAS 41. Indonesia has a large oil palm plantation, which requires an assessment of reliable biological assets. The use of fair value in accordance with PSAK 69 wants to be seen to be implemented or not. The researcher used a literature study to see how IAS 41 was adopted by PSAK 69 in various countries. Of the 9 journals analyzed only one said that fair value can be relied on compared to historical value. Fair Value is very difficult to use because there are several constraint factors. Therefore, the assessment of FFB which is an agricultural product from oil palm has a variety of acquisition values in accordance with the location of the plantation area. Keyword: IAS 41, PSAK 69, Agriculture, Biological Assets, Fair Value 1. INTRODUCTION Indonesia has a plantation company where the company uses a colonial-style commercial agriculture economic system. This plantation system is carried by foreign capitalist companies which are actually European plantation systems. The European plantation system is very different from the traditional plantation system which is traditional and cultivated on a small scale with a minimum capital investment. Plantation are part of a commercial agricultural economic system that is demonstrated in the form of large- scale and capital-intensive commercial crops, using large areas of land, having labor organizations that use modern technology, specialization, and administrative and bureaucratic systems. According to BPS statistics, 20.93% of land use in Indonesia is used for oil palm plantations, of which 14.42% are on the island of Sumatra and 6.51% are on the island of Kalimantan. The Indonesian Institute of Accountants (IAI) publishes PSAK 69 "Agriculture" where effective January 1, 2018 is used. This PSAK 69 is regulated in relation to biological assets. PSAK 69 adopted directly from IAS 41 "Agriculture". The following in Figure 1 can be seen the path of adoption of IAS 41 conducted by IAI.