Agriculture - Perspectives and Problems in Terms of International Accounting Standards (original) (raw)
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International Journal of Food and Agricultural Economics, 2013
Agricultural sector, from past to present, had assumed very important duties on economic and social development of societies. It became a globally indispensable and strategic sector due to its various attributes such as: direct/indirect contributions to population nourishment, national income, employment, capital transfers, raw material supply for industry, exportation, biological diversity and ecological balance. Since the dawn of humankind, agricultural sector had gone through a variety of phases in terms of production activities and land proprietorship. Agricultural activities that emerged in the period of hunter-gatherer societies have been superseded by today’s specialized and planned agricultural enterprises utilizing information and technology. Agricultural accounting has also experienced a significant change in parallel with those improvements. This study aims to investigate historical development of agricultural accounting and difficulties encountered during its implementat...
Measurement of Agricultural Activities According to the International Financial Reporting Standards
Procedia Economics and Finance, 2015
IAS 41 Agriculture sets out the accounting for agricultu (living plants and animals), agricultural produce (harveste the outcome of processing that followed harvest. The st value less estimated costs to sell, but this method can b requirement does not stand, the asset is measured at cos accumulated. At the point of harvest the value of agricult time this value is considered the cost of the produce(for th
SPECIFIC ASPECTS REGARDING THE ACCOUNTANCY OF AGRICULTURAL ACTIVITIES
Agriculture is a main branch of economy, more so in Romania which is having a cultivated area of approximately 8.3 million and a vegetable agricultural production of approximately 43.5 billion RON. Thus, this sector owns an important financial flux and bares an important need for a better organization and accounting. The purpose of the article is to visualize the way of organizing accounting in case of economic agencies, which carry out agricultural activities, in the field of vegetable production. This topic is of particular importance in research, from the point of view of the particularities of this economic sector, which shows its action on accounting in order for specialists to implement particular accounting policies and establish the specific framework for the annual financial statements.
Accounting Practice in Agricultural Enterprises in Turkey
Chinese Business Review, 2017
Agricultural sector is vital for human beings, it provides stuff to the other sectors and it contributes to employment considerably. A large proportion of the exportation of Turkey is made from the agricultural products. Thereby it can be said that the agricultural sector is one of the main sectors contributing to the economy of the country considerably. But it's known that the sector is affected by some risks and uncertainities such as: sector's being made-up of family-owned companies, its being sensitive to the weather conditions, the long process of buying products, the work's being seasonal, self-consumption, the difficulty in accounting the cost, unrecorded agricultural transactions. Within this context to determine the sector's contribution to the country's economy clearly is related to recording the agricultural transactions properly and choosing the realistic methods and implementations. But despite the importance that agricultural transactions carry, the rules of recognition of the related transactions stay at an area that is not much worked on by the operators and researchers till the accounting postulates published. One reason for this is the sector, which is generally made-up of family-owned companies, and the operators have a general view point that accounting is not the purpose of management but taxation. In recent years with the international development of economy and technology, it's seen that big investors have entered the sector. With the changed system of trade, agricultural sector became a strategic sector. In this respect, in-depth data and information, acquired from accounting system, became very important. In this study, the principles and the rules that are applied in the agricultural transactions within the frame of international accounting standards are explained. In which account group should be the biological assets that are agricultured and agricultural products according to their qualities, which accounts are used, and how they are recognitioned are explained. In this context, in the study the examples which are related with the implementation are given over annual plants and prennial plants. The differences between the accounts that are used, are mentioned over by these examples.
A Look at the Accountancy in Turkish Agriculture in Terms of International Accountancy Standards
International Journal of Academic Research in Business and Social Sciences, 2015
Agriculture is a field that exists since the existence of human beings and It has been really difficult to account the agricultural activities. Turkey, as a country that has a broad access to the agricultural fields in the list of the developing countries, has been improving its studies related to this field according to the World standards. As a result of increasing international trade accounting agricultural activities has gained importance. And to overcome these difficulties it has become an obligation to take mutual decisions. And for that reason International Accountancy Standards Institute published "The International Accountancy Standard" (IAS-41 Agriculture) and since 01 January 2003 it has endured. Turkish Institute of Accountancy Standards, published 41 numbered accountancy Standard that is related to agriculture in 24.12.2006 date and 26090 numbered gazette in order to apply to the accountancy periods that had started after the date 31.12.2005.The fact that living beings and agricultural products have bio-cycle makes accounting and valuation quite important. Accountancy Standards in Turkey (TMS-41) "Agricultural Activities Standards", cares for the facilities of living beings and define the principles of accounting and measurement. AST 41 within "The Standard of Agricultural Activities"; sheds light on which is accepted as agricultural activity and which is not, what is the basis of accounting and reporting in agriculture, the issues as the valuation of the living beings with the realistic values. Nevertheless, it can be seen that there are differences in applications when studies about agricultural accountancy in agricultural business in Turkey. Generally these differences are about , which counting are living being's rotating or stable going to be watched and whether their evaluation is going to be done according to the costs or quotation. THE IMPORTANCE OF ACCOUNTANCY AND PLANNING IN AGRICULTURAL BUSİNESSES Plan is to decide on the actions of the future today. Plans may be written or designed on the mind. Because of the complexity of agricultural action, plans that are written down add to the success of the business. Because correcting a mistake on a paper is easier than correcting a mistake during the production.
2016
With globalization, there have been many developments in the accounting area. Among these developments, the Institute of International Accounting Standards proposed the standards for accounting and reporting. 41st one of these standards is on agricultural activities. This standard comprises Biological assets and agricultural products in the time of harvesting. Biological assets and agricultural products are classified under the biological assets heading in the balance sheets. Among agricultural facilities, biological assets go through biological processes such as growing in quality and quantity, deterioration, production and breeding. Thus recognition of these goods is an important issue. Biological assets like farm animals and fruit trees produce goods during their lifetimes. According to this standard, for biological assets, depreciation must be allocated. As in the other standards, in this standard the method for calculating the depreciation is crucial. However when we examine th...
Accounting on the Particularities That Concession Agricultural Units
Annals of the University of Oradea: Economic Science, 2012
Agriculture represents the branch of the material production which deals with growing crops and raising animals in order to obtain farm produce and some raw materials, as well asthe totality of works and methods used for this purpose. Agriculture has specific traits mainly induced by the traits of its results. Thereupon, what sets apart agriculture from other sectors of the economy is the volume, structure and concretization of the resources in the process of their consumption. The essential cause of these differences is the fact that land is the main production factor and that, compared to the development level of the production forces and the natural and biological factors, it behaves in a specific manner.Definitions and characteristics of agricultural activities are given also in The International Financial Reporting Standards (IFRS) , respectively IAS 41, "Agriculture". Hence, according to IAS 41 "Agriculture", agricultural activity is defined as the manageme...
INTERNATIONAL JOURNAL OF ACCOUNTING AND TAXATION, 2018
The objective of this research is to analyze the readiness of Accounting Standards for Agriculture (PSAK 69) that should be implemented for 2018 financial statements in Agro Industry Company in Jember and Probolinggo, Indonesia. Qualitative Method has been employed in this research with interview and observation in some agro industry companies. The objects of this research are PT Mangli Djaya Raya, PTPN X (Kertosari Garden), and Perum Perhutani KPH Jember and Probolinggo. The results indicate that those companies are not entirely implementing PSAK 69 and generally they employ historical cost to recognise and measure their biological assets. PT Mangli Djaya Raya, which has tobacco plants, reports its financial statements once a year, while the lifetime of tobacco plants last less than a period of financial statements. Therefore, the tobacco plants doesn"t appear in their balance sheet as biological assets. The results in PTPN X, which has tobacco, cacao, and sugarcane, imply that the biological assets recognition based on historical cost rather than fair value. However, for cacao and sugarcane have already been recognized as biological assets in its balance sheets. Similar results for Perum Perhutani KPH Jember and Probolinggo, which have teak, rosewood, and mahogany as their commodity, do not recognize biological assets based on fair value. Generally, the obstacle of PSAK 69 implementation is how to measure biological assets using fair value due to lack of active market. This may affect reliability and relevancy of companies financial statements information regarding biological assets.
Present study investigated the gap between accounting practices and the magnitude role of accounting information in the agricultural sector. Problem statement: Factors for this gap are: Current general accounting rules do not reflect the particularities of farming, the need of farm management, rural development and sustainability. The introduction of International Accounting Standard 41 (IAS 41) by International Accounting Standard Committee, Approach: With the Farm Accounting Data Network (FADN) in Europe, could be key elements to improve the use of agriculture accounting. Results: After mandatory and optional adoption for listed and non-listed small size companies, of IAS's respectively, by EU at 2005, we conclude that the main contribution of IAS 41 is to provide a strong conceptual framework in agricultural accounting practice. Conclusion: FADN is an experienced data network, which could be a guide for implementing of IAS 41. Finally, we unfold IAS 41 statutory and FADN procedures grounding an informative frame for farm development policy.
The achievability of sustainable reporting practices in agriculture
Corporate Social Responsibility and Environmental Management, 2009
This research investigates the process of change in moving from a domestic accounting standard, AASB 1037, relating to self-generating and regenerating assets (SGARAs) to an international standard, AASB 141. It focuses on the achievement (or nonachievement as it may be) of sustainable reporting practices for these agricultural assets. This paper fi nds that the transition to AASB 141 has allowed fi rms the discretion to change how they value their agricultural assets in comparison to the domestic standard. Consistency may have been achieved to a limited extent with the introduction of this fi nancial accounting standard but comparability appears not to have been. Further, there is very limited understanding of the reporting of these assets from a user's perspective. It is concluded that this lack of consistency, comparability and understandability will not help achieve sustainability in the reporting practices of agricultural assets. experience with meeting the reporting requirements of AASB 1037, Fosters considered that the accounting requirements and valuation concepts of AASB 1037 when applied to the wine industry were too onerous for the average user, making it impossible for users to understand the reporting of such assets.