new opportunities for farm accounting（农场会计面临的新机遇）.pdfVIP

NEW OPPORTUNITIES FOR FARM ACCOUNTING Authors: Josep Maria Argilés and Eric John Slof July 2000 We acknowledge the support of the FADN Division of the D.G. VI for Agriculture of the European Commission and the XCAC office in Barcelona. ABSTRACT There is a gap between the importance given to accounting and the low level of bookkeeping and accounting practice in the agricultural sector. Current general accounting rules do not adapt very well to the particularities of farming and are difficult and expensive to implement. The Farm Accountancy Data Network (FADN) and IASC’s Proposed International Accounting Standard on Agriculture (PIASA) could be key elements to improve the use of accounting in European farms. The PIASA provides a strong conceptual framework but might need further instruments for its implementation in practice. FADN is an experienced network that has elaborated very detailed farm accounting procedures. Empirical data indicate that current FADN reports are already considered useful by farmers for different purposes. Some changes in the FADN procedures are suggested, while some aspects of FADN are worthwhile for the future IAS on agriculture. JEL: M41 Key words: Agricultural accounting, International Accounting Standards, Farm Accountancy Data Network, European Union, use of farm accounting. - 1 - 1. INTRODUCTION In spite of its relative importance in the economy of many countries and its growing interrelationships with other sectors, agriculture has traditionally not received much attention from accounting researchers, practitioners and standard setters. Consequently, current accounting principles typically do not respond very well to the particular characteri