Improving the valuation of biological assets and the formation of financial results in vegetable growing in accordance with IAS 41

Abstract

The article examines the role of IAS 41 «Agriculture» in cost accounting and financial result formation in vegetable growing. It covers measurement of biological assets at fair value less costs to sell, recognition of produce at harvest and the effect on financial statements. The accounting stages and their role in forming the financial result are illustrated in a diagram. Recommendations for the transition to international standards are provided.