Agricultural Activity – National Accounting Standard project – evaluation of the proposed regulations
Journal Title: Zeszyty Teoretyczne Rachunkowości - Year 2018, Vol 2018, Issue 100
Abstract
This article aims to present the most important issues related to the functioning of agricultural accounting in Poland in the context of the National Accounting Standard project (NAS) Agricultural Activity and IAS 41 Agriculture. The biological character of agricultural production makes it impossible to correctly reflect the impact of economic events connected with agricultural activity (biological transformation) by using the traditional accounting model based on the historical cost principle and matching principle. This presumption was adopted during the IAS 41 development process. Agricultural economists had waited for this document with great expectations and, at the same time, with great concern. IAS 41 recognized evaluation methods and methods of obtaining calculations of outturn categories previously used in economics and farming. This, in particular, relates to profit or loss made where the compound of biological assets is initially included in fair value (farm-gate). Thus obtained result is profit/loss not on the sale, but on production. That is the correct approach, since production categories are basic agricultural categories for the evaluation of rationality of agricultural activity. Unfortunately, the Agricultural Activity project in Poland ignores this fact and tends to depart from fair value in the evaluation process. It introduces subjective methods of calculating costs of agricultural production, which infringes the “balance between benefit and cost principle” as well as its usefulness (substance over form principle). Therefore, in view of all this, one may question the sense of developing NAS Agricultural Activity.<br/><br/>
Authors and Affiliations
Tomasz Kondraszuk
Keywords
Related Articles
- EP ID EP423828
- DOI 10.5604/01.3001.0012.7319
- Views 95
- Downloads 0
Results of tax inspection of prior periods in accounting ledgers
The article presents methods of entering the results of tax inspection into accounting ledgers. One of the main problems is determining the exact time period to which the tax inspection results relate. In practice, it c...
Value Creation Reporting: Answering the Question ‘Value to Whom’ according to the International Integrated Reporting Framework
Value Creation Reporting: Answering the Question ‘Value to Whom’ according to the International Integrated Reporting Framework
Zastosowanie zorientowanej procesowo ontologii w analizie zadłużenia przedsiębiorstwa
W artykule przedstawiono podejście ukierunkowane na zintegrowanie wiedzy o procesach gospodarczych w systemach wspomagania decyzji (Decision Suport Systems). Dotyczy to dwóch głównych aspektów systemu, tj. sformalizowani...
Prezentacja innych dochodów całkowitych w sprawozdaniach finansowych wybranych spółek publicznych w Polsce w latach 2009–2011
Inne całkowite dochody to nowa kategoria ekonomiczna, dopiero testowana w praktyce gospodarczej. Oczywi-sty wydaje się fakt zapotrzebowania na badanie aspektów praktycznych dotyczących prezentacji innych całkowitych doch...
The impact of tax optimization on the picture of the financial position of enterprises
The paper discusses the impact of tax optimization in the area of corporate income tax on the picture of the company's financial position. The purpose of the article is to answer the question whether the introduction of...