Accounting of Capital Costs for Improving Land

The purpose of the article is to deepen methodological framework of accounting of capital expenditures on agricultural land improvement. It discloses and clarifies the meaning of the term 'land improvement' as well as the list of expenditures classified as capital expenditures on land improvement. It is proposed to exclude sub-account 102 'Capital expenditures on land improvement' from the Chart of Accounts Instruction and to include such expenditures into the initial value of improved land plots upon termination of all works. It is proven that expenditures on capital improvement of land are not subject to amortization as upon specific works for capital land improvement being performed, such works require no re-performance. It is proven that as land plots represent one of types of fixed assets, then capital expenditures on leased land plots improvement are to be accounted for just as the improvement of operating lease assets. It is proposed to implement analytical accounting by types of works related to fundamental improvement of lands specifying the cost of each type of works separately by each land plot.