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Title:
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A comparative study of difficulties in accounting preparation and judgement in agriculture using fair value and historical cost for biological assets valuation
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Other titles:
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Estudio comparativo de las dificultades para la realización de la contabilidad y la interpretación de la información en la agricultura aplicando coste histórico y valor razonable en la valoración de los activos biológicos
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Author:
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García Blandón, Josep; Argilés Bosch, Josep M.; Sabata, Anna
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Other authors:
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Universitat Ramon Llull. IQS |
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Abstract:
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This paper presents empirical research comparing the accounting difficulties that arise from the use of two valuation methods for biological assets, fair value (FV) and historical cost (HC) accounting, in the agricultural sector. It also compares how reliable each valuation method is in the decision-making process of agents within the sector. By conducting an experiment with students, farmers, and accountants operating in the agricultural sector, we find that they have more difficulties, make larger miscalculations and make poorer judgements with HC accounting than with FV accounting. In-depth interviews uncover flawed accounting practices in the agricultural sector in Spain in order to meet HC accounting requirements. Given the complexities of cost calculation for biological assets and the predominance of small family business units in advanced Western countries, the study concludes that accounting can be more easily applied in the agricultural sector under FV than HC accounting, and that HC conveys a less accurate grasp of the real situation of a farm. |
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Publication date:
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2012-01 |
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Subject (UDC):
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33 - Economia |
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Subject(s):
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Agricultura--Comptabilitat
Cost--Control
Anàlisi del valor
Fair value
Historical cost
Biological assets valuation
Farm accounting |
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Rights:
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L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons:http://creativecommons.org/licenses/by-nc-nd/4.0/
© EDITUM i ASEPUC |
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Pages:
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34 p. |
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Document type:
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Article
Article - Published version |
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DOI:
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https://doi.org/10.1016/S1138-4891(12)70040-7
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Published by:
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Asociación Española de Profesores Universitarios de Contabilidad
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Publish at:
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Revista de Contabilidad: Spanish Accounting Review. Vol. 15, nº 1 (2012), pág. 109-142
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