AGRARIAN ACCOUNTANCY IN THE VISUAL CONE OF INTERNATIONAL ACCOUNTING STANDARDS

After a long period during which agriculture did not have a standard of its own and applied for that matter the IAS 2 rules regarding inventories; IAS 16 regarding property, plant and equipment and IAS 18 regarding revenues, one last standard is being born ? IAS 41. The late appearance of this standard is compensated by the great attention granted from the IASC, as agriculture is very important for those countries in course of development. IAS 41 is operative for those financial statements starting with the 1 of January 2003. The current standard is applied to account those elements regarding agricultural activities. IAS 41 is does not deal: with genuine exploiting activities, with harvested agricultural products, which are non biological products, or with the agricultural production, which is incorporated in the processing process. The activity will follow the financial reporting guidelines imposed by IAS 41 if: (a)the plants or animals, that represent the object of the activities, are living and suitable for transformation; (b) the change must be controlled, a fact which implies a range of activities like ground fertilizing and crop cultivation, feeding and medical assistance while breeding animals;(c)there have to exist fundamentals for evaluating changes like: the degree at which plants ripen, the animals weight, the trees circumference. The most important feature of this standard is the request for evaluating the biological assets at each balance sheet date at its fair value. Taking into consideration the limited framework of the current standard, beside of the explicit exceptions, all IAS must also be applied in agriculture.