Dyatlova A.F.Moscow University of Ministry of the Interior of Russian Federation named after V.Y. Kikot, Moscow, Russian Federation angelina09_63@mail.ru
Importance Relying upon clauses of IAS 41 Agriculture and economic substance of the concept of fair value of biological assets, the article discusses how the accounting data system of agricultural entities evolves in line with the existing accounting methodology, accounting process and contents of accounting and specialized agricultural reporting, formation and accounting of separate financial reserve to secure investment in non-current biological assets. Objectives The research provides the rationale for the priority of the existing accounting and financial reporting system and methodology in agriculture and evaluates biological assets during their biological transformation, and agricultural products at their actual (historical) cost throughout the entire life cycle as compared with measurement at fair value. We also formulate principal areas to improve how information on biological assets are recognized in accounting records, financial statements and management reports throughout all business processes and financial resources to generate non-current biological assets. Methods The research relies upon monographic, accounting, inductive, deductive methods and methods of systematization and comparison. Results We summarized techniques used to recognize and improve accounting of some types of biological assets and proposed elements for recognizing analytical data on biological assets and processes of their biological transformation and investment funds generation in accounting records, financial statements and specialized management reports. Conclusions and Relevance We prove that there are no conditions and needs in Russia for all agricultural entities to use fair value. We also unveil the contemporary system of accounting and financial reporting in terms of biological assets of agricultural entities. In case fair value is used, we determine and substantiate the main areas and methods for improving the accounting and information framework for operating and investment biological assets and investment financial resources as part of formation of biological assets.
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