Organizing Accounting and Taxation in Farms in the Context of Using the Professional Judgment

In Ukraine, farms of various legal forms make up 70 percent of the total number of agricultural business entities. For the indicator of the total number of employees, farms are ahead of other forms of agricultural enterprises. Along with this, the uncertainty regarding the accounting methodology in farms is due to the inconsistency of legal acts with the principles of property relations (using of material resources, intellectual assets, land, labor participation of members and appropriation of profit by them). Therefore, the so-called vacuum of methodological support for accounting and taxation in farms arose. The purpose of the article is to interpret the legal framework for the creation and activities of farms and family farms, to bring the such economic entities into operation in a transparent accounting system and optimal taxation system, to substantiate recommendations on possible options for applying professional accounting judgment in farms with a small number of workers. The systematization of various types of farms was carried out in order to highlight the most similar groups of issues on the organization of accounting and taxation. The options for organizing the accounting taking into account various legal forms were disclosed. The structure of accounting policies was designed to optimize time-consuming accounting procedures. The options for acceptable tax systems for different legal forms were justified. The authors appreciated the best practices of applying the accounting methodology in other industries, foreign countries, taking into account the historical heritage of such organizational structures. The solution to the problem of accounting and taxation in farms was carried out in the context of professional accounting judgment. This approach allows to find the most optimal options for organizing accounting and taxation for the farms. The article contains elements of an accounting methodology and methodical recommendations that can be used in the practice of organizing accounting and taxation of farms.