IDEAS home Printed from https://ideas.repec.org/a/caa/jnljfs/v62y2016i9id59-2016-jfs.html
   My bibliography  Save this article

Evaluation of applicability of IAS 41 - Agriculture to the valuation of growing forest stands and their accounting treatment in the Czech Republic

Author

Listed:
  • M. Stárová

    (Department of Trade and Finances, Faculty of Economics and Management, Czech University of Life Sciences Prague, Prague, Czech Republic)

  • H. Čermáková

    (Department of Trade and Finances, Faculty of Economics and Management, Czech University of Life Sciences Prague, Prague, Czech Republic)

  • T. Hlavsa

    (Department of Statistics, Faculty of Economics and Management, Czech University of Life Sciences Prague, Prague, Czech Republic)

  • H. Vostrovská

    (Department of Trade and Finances, Faculty of Economics and Management, Czech University of Life Sciences Prague, Prague, Czech Republic)

  • M. Levá

    (Department of Trade and Finances, Faculty of Economics and Management, Czech University of Life Sciences Prague, Prague, Czech Republic)

Abstract

The paper aims to evaluate the applicability of International Accounting Standard (IAS) 41 to the valuation of a growing stock of stands and entering its value in the corporate accounting system in the Czech Republic. In this context, IAS 41 is analysed in detail with focus on the method of reporting of the forest value in the accounting. At the same time a questionnaire survey is conducted among the forestry sector experts on the topic of willingness to report the forest value in statements. Based on the findings, an alternative solution to the application of IAS 41 to the forest accounting treatment, which would be potentially applicable, is proposed in the paper. The questionnaire survey (n = 317) has found that there is an increasing tendency towards the willingness to report the forest in the statements, especially in the organizations which simultaneously meet the statutory duty to disclose this value in the notes to the statements, and it is also recognized that this willingness does not depend on the legal form of organization.

Suggested Citation

  • M. Stárová & H. Čermáková & T. Hlavsa & H. Vostrovská & M. Levá, 2016. "Evaluation of applicability of IAS 41 - Agriculture to the valuation of growing forest stands and their accounting treatment in the Czech Republic," Journal of Forest Science, Czech Academy of Agricultural Sciences, vol. 62(9), pages 429-440.
    • Handle: RePEc:caa:jnljfs:v:62:y:2016:i:9:id:59-2016-jfs
    DOI: 10.17221/59/2016-JFS
    as

    Download full text from publisher

    File URL: http://jfs.agriculturejournals.cz/doi/10.17221/59/2016-JFS.html
    Download Restriction: free of charge
    File URL: http://jfs.agriculturejournals.cz/doi/10.17221/59/2016-JFS.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.17221/59/2016-JFS?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Leonard Eckel & Steve Fortin & Kathryn Fisher, 2003. "The choice of discount rate for external reporting purposes: Considerations for standard setting," Accounting Forum, Taylor & Francis Journals, vol. 27(1), pages 28-59, March.
    2. Charles Elad, 2004. "Fair value accounting in the agricultural sector: some implications for international accounting harmonization," European Accounting Review, Taylor & Francis Journals, vol. 13(4), pages 621-641.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Argilés bosch, Josep M.a & Aliberch, Anna Sabata & Blandón, Josep García, 2012. "A Comparative Study of Difficulties in Accounting Preparation and Judgement in Agriculture Using Fair Value and Historical Cost for Biological Assets Valuation," Revista de Contabilidad - Spanish Accounting Review, Elsevier, vol. 15(1), pages 109-142.
    2. Patrik Svoboda & Hana Bohušová, 2017. "Amendments to IAS 16 and IAS 41: Are There Any Differences between Plant and Animal from a Financial Reporting Point of View?," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 65(1), pages 327-337.
    3. Ricardo Luiz Menezes da Silva & Paula Carolina Ciampaglia Nardi & Maisa de Souza Ribeiro, 2015. "Earnings Management and Valuation of Biological Assets," Brazilian Business Review, Fucape Business School, vol. 12(4), pages 1-26, June.
    4. Claudine Mangen & Alexia Paduano & Bianca Paduano & Jessica Hadzurik & Juliano Leggio & Kayla Russo, 2020. "Smoke and Mirrors? Disclosures in the Marijuana Industry in Canada," Accounting Perspectives, John Wiley & Sons, vol. 19(3), pages 149-179, September.
    5. Malgorzata Wegrzynska & Alina Nowotarska, 2021. "Measuring and Valuation of Biological Assets: A Research Study," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 331-345.
    6. Hana BOHUŠOVÁ & Patrik SVOBODA & Danuše NERUDOVÁ, 2012. "Biological assets reporting: Is the increase in value caused by the biological transformation revenue?," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 58(11), pages 520-532.
    7. Josep Ma. Argiles (UB) & Josep Garcia Bladon (IQS) & Teresa Monllau (UPF), 2009. "Fair value versus historic cost Valuation for Biological assets: Implications for the quality of financial information," Working Papers in Economics 215, Universitat de Barcelona. Espai de Recerca en Economia.
    8. Liyu He & Sue Wright & Elaine Evans, 2021. "The impact of managerial discretion on fair value information in the Australian agricultural sector," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(S1), pages 1897-1930, April.
    9. Li Yu (Colly) He & Sue Wright & Elaine Evans, 2018. "Is fair value information relevant to investment decision-making: Evidence from the Australian agricultural sector?," Australian Journal of Management, Australian School of Business, vol. 43(4), pages 555-574, November.
    10. Arimany, N. & Farreras, M.A. & Rabaseda, J., 2013. "Alejados de la NIC 41: ¿Es correcta la valoración del patrimonio neto de las empresas agrarias?," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 13(01).
    11. Vladu Alina Beattrice, 2013. "FAIR VALUE MEASUREMENT IN AGRICULTURE AND THE POTENTIAL TO MISLEAD Abstract: Applying fair value measurement to tangible and intangible assets in agriculture cannot be risk free. Twofold reasons can b," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 5, pages 95-98, October.
    12. Jaunzeme Justine Sophia, 2016. "Combining Environmental and Spatial Discount Rates for Valuation of Assets According to International Financial Reporting Standards," Economics and Culture, Sciendo, vol. 13(1), pages 14-20, June.
    13. Elad, Charles & Shah, Neeta & Agyeman, Charles, 2023. "Accounting classification in the era of International Financial Reporting Standards: The case of Africa," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 51(C).
    14. Comello, Stephen D. & Maltais-Landry, Gabriel & Schwegler, Benedict R. & Lepech, Michael D., 2014. "Firm-level ecosystem service valuation using mechanistic biogeochemical modeling and functional substitutability," Ecological Economics, Elsevier, vol. 100(C), pages 63-73.
    15. Hana BOHUSOVA & Patrik SVOBODA, 2017. "Will the amendments to the IAS 16 and IAS 41 influence the value of biological assets?," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 63(2), pages 53-64.
    16. De George, Emmanuel T. & Li, Xi & Shivakumar, Lakshmanan, 2016. "A review of the IFRS adoption literature," LSE Research Online Documents on Economics 67599, London School of Economics and Political Science, LSE Library.
    17. Rafael Todescato Cavalheiro & Régio Marcio Gimenes & Erlaine Binotto & Carlos Ricardo Fietz, 2019. "Fair Value of Biological Assets: An Interdisciplinary Methodological Proposal," RAC - Revista de Administração Contemporânea (Journal of Contemporary Administration), ANPAD - Associação Nacional de Pós-Graduação e Pesquisa em Administração, vol. 23(4), pages 543-563.
    18. Ramona Laptes & Adriana Florina Popa, 2010. "The History And The Development Of The Financial Reporting Specific To The Romanian Agriculture," Analele Stiintifice ale Universitatii "Alexandru Ioan Cuza" din Iasi - Stiinte Economice (1954-2015), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 57, pages 15-28, november.
    19. Lambert Jerman, 2015. "Les Enjeux De L'Application Des Normes Ias-Ifrs : L'Etude Des Preparateurs Des Comptes, Une Perspective De Recherche Encore Inexploree," Post-Print hal-01188736, HAL.
    20. Giraudeau, Martin, 2017. "The farm as an accounting laboratory: an essay on the history of accounting and agriculture," LSE Research Online Documents on Economics 74106, London School of Economics and Political Science, LSE Library.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:caa:jnljfs:v:62:y:2016:i:9:id:59-2016-jfs. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ivo Andrle (email available below). General contact details of provider: https://www.cazv.cz/en/home/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.