Accounting and reporting in the framework of ias 41 agricultural activities in the poultry farming industry

Agriculture is the first type of activity that is carried out in order for human beings to survive. For years, agricultural activities have been fulfilled by rural farmers or small family businesses. However, today, due to the rapidly growing world population, the resulting increase in food needs, the spread of the use of developing technology in the agricultural sector and the impact of agricultural incentives provided by the state, there are significant increases in capital investments in the agricultural field. In parallel with the developments in the sector, the importance of agricultural cost accounting for industries has started to increase as well. On the other hand, worldwide accounting and financial reporting standards are published in order to meet the needs arising from the economic, technological and globalization developments. Although the International Accounting Standards (IAS 41) issued for the accounting of agricultural activities are also a guide in this regard, it is known that it will help management in all enterprises where data are meticulously recorded, as well as facilitate the management of agricultural activities, and thus more yields can be achieved. It is also important that the information contained in the financial statements prepared in accordance with these standards is as close to the truth as its reliability. For this purpose, IAS 41 entered into force on 01.01.2003. Subsequently, arrangements were made in different time periods depending on the need. The core purpose of IAS 41 is to ensure uniformity in accounting practices in regards to the agricultural activities of farming enterprises operating in different countries. Due to the biological characteristics of living assets, they go through a number of processes such as birth, growth, maturation, so the considerations related to the accounting and valuation of these assets differ significantly from other assets. Within the scope of agricultural activities, the fact that biological assets experience the birth, growth, aging and death processes and the advent of significant differences in their values during these processes makes the recognition, valuation and presentation of biological assets in financial statements noteworthy. The study herein will focus on how to account and report the activities within the context of IAS 41 Agricultural Activities Standard for quail production, which is a part of the poultry farming sector and has its own market both in the world and in Turkey in recent years. At the same time, the study will focus on the effect of incentives given by the state to poultry farming sector initiatives on accounting practices in these enterprises. For this purpose, agricultural activities and animal production will be presented in the first part of the study. The provisions of IAS 41 Agricultural Activity Standard will be examined in detail in the second part of the study. In the third part of the study, the necessary calculations and records for reporting within the framework of IAS 41 in quail production enterprises will be emphasized.