Authors : Oksana V. Moshchenko, Boris N. Hosiev, Ahmed H. Malamatov, Yulia V. Safronova and Aleksandr Yu. Usanov
Abstract: Reforms of accounting and financial reporting in the Russian Federation calls for their harmonious development in accordance with the generally recognized principles and requirements of the International Financial Reporting Standards (IFRS). In this connection, the practical application of the IAS 41 “Agriculture” provisions is of particular importance for agricultural organizations. The study defines the concept of biological assets and their composition. Eight groups of basic errors in biological assets accounting were identified and described in detail. The highlighted problems of reliable reflection of biological assets state and movement in the enterprise’s financial statements are classified in terms of audit criteria. The researchers developed a methodology for fair value measurements of biological assets, taking into account domestic accounting practices. The methodology for accounting biological assets biotransformation and financial results from agricultural activities in assessing biological assets at fair value was proposed. The researchers suggest to use the account 95 “Gains and losses from Biological Assets” to account for income and expenses when valuing biological assets at fair value. According to the objects of biological assets, the researchers recommended to conduct a synthetic accounting of the second order, presented in the study. As a solution to possible distortions in accounting indicators for biological assets, a program of their internal control has been developed. This program allows to ensure the internal control of these assets in accordance with the main criteria for auditing financial statements: existence; rights and obligations; completeness; accuracy; evaluation; information disclosure, etc. The study will be useful to practicing accountants and internal auditors as well as to teachers and students of agricultural universities, studying the accounting and audit.
Oksana V. Moshchenko, Boris N. Hosiev, Ahmed H. Malamatov, Yulia V. Safronova and Aleksandr Yu. Usanov, 2017. Biological Assets: Problems of Reliable Reflection in the Reports of Agricultural Enterprises of Russia. Journal of Engineering and Applied Sciences, 12: 5784-5790.