Accounting for the Transition of Biological Crop Assets to Another Proprietor

Biological crop assets are inseparable from the land. In case of lease the plants are transferred together with the land plot where they grow to the property of the tenant. The aim of the article is to search for and assessment of options taking into account the transition of biological crop assets to another proprietor. It is proposed to make two rent assessments (for the land, for the garden, vineyard and other perennial plantations) and separately reflect the corresponding payments in the accounting records. In practice, it may be necessary to sell agricultural products at the stage of cultivation or harvesting. When the transfer of land to lease it is offered to conclude a sales contract of works in progress without land lease and record the operations for its implementation. This leaves open the question of who is the agricultural producer: the subject who bought the current biological assets, harvested and sold the products, but has no land in property or lease; the owner or lessee of land, which has only planted the plot and immediately sold the crops as work in progress. In this case, the buyer and seller are not considered as agricultural producers, and cannot take advantage of tax benefits and credits. Therefore, the appropriate changes in the tax laws must be made.