Improvement of IFRS application policy in relation to land assets of agricultural enterprises

Abstract

The climate change and food security are closely related to the effective use and conservation of agricultural land. This research is devoted to improving the methodological and methodical procedures for the IFRS’s application to the accounting of the land assets of agricultural enterprises, primarily for the needs of developing countries.Research of the accounting state of agrarian enterprises in Ukraine was carried out using statistical methods, methods of analysis and synthesis. Interviews of 3000 different accountants as to the land tenure of enterprises revealed methodological and methodical difficulties in applying IFRS to the land assets of agricultural enterprises. A special need consists in improvement of the valuation procedures for such assets. On the example of the United States and Ukraine, it has been established that, for the purpose of determining the fair value of agricultural assets, it is difficult for accountants to use generalized approaches to IFRS that do not take into account branch specifics and differences in socioeconomic environments in different countries. For developing countries with a strong agricultural potential, the most effective is the f the land potential of agricultural enterprises based on the rental income. Accordingly, the calculation methodology should be incorporated into their current accounting policy.Based on the simulation and forecasting technique it was determined, that valuation of the land assets of agricultural enterprises by the rental income method increases their cost by almost three times compared with the calculation based on the rental.The carried out studies form also the methodological framework for the further improvement of IFRS, including development of a separate industry-specific IAS (IFRS) “Agricultural Land”.

Management of Non-current Assets and Capital Investments in Enterprises of the Agro-industrial Sector: A Case Study of Ukraine

“…However, approaches to understanding the essence of such management are debatable and can be interpreted differently by different researchers. In particular, it is necessary to note the significant contribution to the study of practical aspects of enterprise asset management, which was made in the works of such scientists as N. Barabash [3], A. Boiar [4], R. Mann [5], I. Oleksandrenko [12], T. Shmatkovska [16], O. Stashchuk [17], V. Varenyk [19], V. Yakubiv [20], V. Zhuk [21] and others.…”

Problems and Future of Accounting for Land Resources in Ukraine

“…Проблематика обліку земельних ресурсів, особливо земель сільськогосподарського призначення широко розкрита в наукових і практичних публікаціях [1][2][3][4][5][6][7][8][9][10][11]. Проте, Закон України № 2178-10 «Про внесення змін до деяких законодавчих актів України щодо обігу земель сільськогосподарського призначення» [12], прийнятий Верховною Радою України в ніч 31 березня 2020 року, за яким з 1 липня 2021 року має запрацювати ринок землі в Україні, по-перше, доводить, що земля все ж таки стане ринковим товаром, а по-друге, дає дослідниками і практикам стимул переосмислити діючі положення обліку земельних ресурсів та розробити дієві облікові механізми фіксації стану, вартості та руху земельного капіталу в умовах ринку.…”

“…Окремими напрямками, що вирізняються серед всього спектру досліджень є: ідея галузевого стандарту запропонована В.М. Жуком [1] та підтримана його науковою школою; підхід проф. Г.Г.…”