Last modified: 2016-01-26
Agriculture is a very specific area, whose specifics are reflected in the accounting and in the related economic assessment of companies. Czech accounting legislation in its current form does not provide a necessary perspective on the various fields due to their specificity as in the case of the International Financial Reporting Standards (IFRS) and the GAAP. It is reflected in the financial analysis. The IFRS include one standard dedicated only to agriculture and its specifics, IAS 41 Agriculture.
The main problems were found at the level of making calculations, including the animal (to the accounts of fixed assets or inventory), valuation pups or measurement of crop production. This leads to different values in the financial statements of the entities that do not provide a sufficiently fair view of the accounting, and are incomparable both between companies and in time.In this article the specifics of agriculture, generally applicable legislation in the Czech Republic, its confrontation with IAS 41 are discussed. There are used own processed documents and publications especially from The University of Economics, Prague. The aim is partly to handle the change of Czech accounting legislation, which would lead to the unification of the manner of reporting, enhance the comparability and presentation of the financial statements in the financial analysis of various economic entities from agricultural sector. As supplementary material, the Czech accounting legislation will be confronted with the methods used in countries with the accounting system GAAP.