A Look at the Accountancy in Turkish Agriculture in Terms of International Accountancy Standards

Abstract

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 BUSİNESSESPlan 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.

Depreciation of Animals and Economic Return: Case Study

“…c) what should the minimum value be for the purpose of depreciation accounting? (Demir, 2015). There are no easy answers to those questions as they are related to the differences in tax legislation and financial accounting.…”

“…This is particularly relevant for pig and poultry holdings and egg producers (Höhere Abschreibungsmöglichkeiten ..., 2014). Demir (2015) notes that the Turkish Law on Tax Procedure establishes the requirement to depreciate productive animals, while their useful life and depreciation rate are estimated depending on the type of biological asset. According to the Chinese tax law, depreciation accounting for productive biological assets shall start next month after the assets are recognised as productive.…”

“…In agricultural production, it is not uncommon that animals, which are intended to be used for an extensive period, have to be prematurely discarded due to insufficient productivity, diseases or disasters. According to Demir (2015), specific aspects of agricultural accounting and issues related to applying common accounting rules in agriculture are among the main reasons leading to erroneous measurement of agricultural activity.…”