MEASURING THE FINANCIAL PERFORMANCE OF AGRICULTURAL ECONOMIC UNITS BASED ON THEIR REPORTING OF BIOLOGICAL (AGRICULTURAL) ASSETS, IN TERMS OF IPSAS 27

Abstract

This study underscores the significance of accounting for biological (agricultural) assets within the Horticulture Office of the Iraqi Ministry of Agriculture, in strict compliance with proposed International Public Sector Accounting Standards (IPSAS). Specifically, it emphasizes the importance of proving accounting operations and presenting critical financial statements, such as the statement of financial position, statement of financial performance, statement of changes in net assets/equity, and statement of cash flows, in a manner consistent with the fair value of current biological assets and the revaluation of non-current assets (perennial plants). The study also delves into the relevant accounting treatment for revaluation differences and their impact on financial statement preparation. These measures are urgently required to tackle the challenges facing the current government accounting system in Iraq, which have adversely impacted the comprehensiveness of government financial reports and compromised the evaluation of financial performance, planning, control, and strategic decision-making for the Horticulture Office of the Ministry of Agriculture. One of the research's salient findings is that preparing financial statements in accordance with IPSAS for the public sector can provide users with more insightful information for informed decision-making. Among the key recommendations is the need to represent financial information for events and transactions that transpire during the financial year in a transparent and accountable manner, through the adoption of IPSAS standards. This, in turn, ensures the preparation of high-quality financial reports that are rich in qualitative accounting information, thereby enhancing the evaluation of financial performance, planning, control, and strategic decision-making for the Horticulture Office of the Ministry of Agriculture.