FEATURES OF METHODS OF ACCOUNTING FOR INSURANCE OF AGRICULTURAL PRODUCTIONS

The article is devoted to solving the scientific problem of clarifying and generalizing the methodology for accounting for payments for insurance of agricultural products, determining its features that distinguish it from others. Considerable attention in the article is paid to the study and analysis of recent publications on the subject of the article, both scientific and practical, normative and legislative acts and statistic data on insurance of agricultural products. It has been established that agriculture is a high-risk industry due to the action of natural, economic, financial, production factors; therefore, it requires the distribution of risks using insurance tools. Statistic analysis showed that in recent years, agricultural production has been affected by negative weather conditions, due to which the level of payments under insurance contracts has doubled, which causes an increasing in the cost of insurance services for agricultural enterprises. Under such conditions, state support is needed, which is currently introduced in the form of compensation for part of the insurance premium paid by agricultural producers. A promising direction for the development of the insurance market has become index insurance, which, despite certain shortcomings, makes it possible to clarify the mechanism for determining the insurance compensation and reduce the term for the receiving of insurance compensation. According to the current features of insurance for agricultural products, a methodology for accounting for payments is being formed. In an agricultural enterprise, based on an insurance contract, liabilities to the insurance company are accrued and the costs to related crop or livestock accounting objects are allocated. Government support provided to an agricultural enterprise is treated as earmarked financing with simultaneous recognition of income. Upon occurrence of the insured event, the incurred damage is allocated to the expenses of the period with the simultaneous accrual of obligations for value added tax on objects that have been retired from production. Insurance compensation received from the insurance company is recognized as income. As the disadvantage of the existing method of accounting for payments for the insurance of agricultural products, the authors determine the impossibility of reflecting the obligations of the insurance company arising at the time of the conclusion of the insurance contract, as well as the lack of information in the financial statements on the existence of insurance for production facilities, although such information has materiality for investors and creditors for making investment decisions. This problem may be the subject of further research.