Abstract
The problem of substantiating the need for the formation of a special reserve for the change in the value of breeding animals in the management accounting system is considered. The groups of possible risks that increase the volatility of demand for biological assets and inflation, introducing uncertainty into the behavior of subjects of breeding sheep breeding, are identified. An algorithm for its calculation, a system of accounts and accounting records for its creation and adjustment of the value, in order to minimize economic risks and improve the management of sustainable development of the subject of breeding sheep breeding, has been developed.
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