IMPROVEMENT OF INCOME AND EXPENSES ACCOUNTING METHODOLOGY FROM FARM ACTIVITIES ACCORDING TO IFRS 41 «AGRICULTURE»

Abstract

The purpose of the study is to improve the methodology of income and expenses accounting from operations of agricultural organizations according to International Financial Reporting Standards (IFRS) 41 «Agriculture». The paper discusses the problem of applying the provisions of IFRS 41, in the part of income and expense from agricultural activities by domestic agricultural enterprises. The study highlighted the peculiarities of Russian agribusiness to be taken into account when constructing the accounting system of enterprises engaged in agricultural activities. According to the results of this work was expressed desirability and feasibility of application of IFRS 41 to account for the financial results from operations agrarian formations are proposed and justified common approaches in accounting for biotransformation of bioresources. It was agreed that revenue upon receipt of biological assets and agricultural products only to the amount of the difference between the value of biological assets and agricultural produce and the costs associated with biological transformations were accepted. Costs associated with the implementation of agricultural activities must be considered, depending on whether to receive any biological assets were incurred: farm animals and plants used as a means of labor and objects of labor. Costs incurred in obtaining the first group of assets, it is advisable to capitalize their cost and are charged to operating expenses over the life bioactive use. In the paper the income and expenses from operations of agricultural organizations as objects of accounting supervision and identified common approaches to their accounts and reflected in the financial statements.