Accounting For Agricultural Products: US Versus IFRS GAAP

Currently there is a mix of accounting guidance for agriculture producers in the US that is both GAAP including Accounting Statement Codification 905 and non-GAAP financial guidelines. Should the US adopt International Financial Reporting Standards (IFRS), this guidance would be replaced with Intern...

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Bibliographic Details
Published in:Journal of business & economics research (Littleton, Colo.) Colo.), 2013-02, Vol.11 (2), p.79
Main Authors: Marsh, Treba, Fischer, Mary
Format: Article
Language:English
Subjects:
Agribusiness
Agricultural cooperatives
Agriculture
Animals
Cattle
Costs
Fair market value
Fair value
Farms
Financial statements
Fixed assets
GAAP
International
International accounting standards
International Financial Reporting Standards
Inventory
Joint products
Market prices
Revenue recognition
Salvage value
Studies
Valuation
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Summary:Currently there is a mix of accounting guidance for agriculture producers in the US that is both GAAP including Accounting Statement Codification 905 and non-GAAP financial guidelines. Should the US adopt International Financial Reporting Standards (IFRS), this guidance would be replaced with International Accounting Standard (IAS) 41 Agriculture. This study identifies systematic differences between the US and International accounting and reporting for agricultural assets and products. The study also finds that international and US agricultural accounting recognition and reporting guidance result in dissimilar reporting due to guidance interpretation. Valuation variances and definition differences including the requirement to change the agricultural asset recognition method from historical cost to fair value continue to be the basis of major reporting differences. Current US guidance on recognizing and reporting agricultural assets is more conservative than the international guidance. Overall, the US agricultural recognition and reporting guidance contains less information and is therefore less beneficial to financial statement users.
ISSN:1542-4448
2157-8893
DOI:10.19030/jber.v11i2.7620