Bio Assets

CHAPTER I THE PROBLEM AND ITS BACKGROUND Introduction In spite of its relative importance in the Philippine economy, agriculture does not receive as often attention from be researchers, practitioners and standard setters. As an example, until the arrival of IAS 41 in February 2001 there was no standard anywhere for biologic assets, whose valuation is difficult and controversial. In terms of causality, the generally depress levels of managerial sophistication, lack of economic means in the sphere and the limited appropriateness of general accounting principles have lead to inefficient agro-informative panel. Farmers have been more reluctant to hit accounting reports. Moreover, because of their size or legal form, most kindles have no legal obligation to publish financial statements. Farmers usually prep atomic number 18 accounts in order to comply with tax framework and subsidies. On the other hand, it is generally believed that accounting can improve farm management and lead to better performance; funding ancestors (other than subsidies) likewise are more easily achieved. Furthermore, Policy makers have withal a need for accounting information as set up for decision making, explaining and predicting farm failure.

Through reasoning of Philippines particularities two key characteristics can lay down: Many farms are found on small-sized family owned dispersed units, with limited training in accounting and finance, the double-entry record system is predominantly focused on a cash basis with periodic generation of financial statements. Because of the narrow capabilities of farm record keeping systems, lenders are labored to focus their analysis on the information that can evenhandedly be obtained from the farmers. Since few noncash transactions (e.g., perpetual inventories, charge-off of prepaid, accrual of liabilities) are recorded by the farmer, a cash-based system is the primary source of information on net cash income. This... If you want to entrance a full essay, order it on our website: Ordercustompaper.com

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