The accounting, evaluation and reporting of live assets within IAS 41 agricultural operations standard: An applicatıon ın the cattle farming business

The agricultural sector, which operates with limited resources to meet unlimited human needs in natural conditions, preserves its impotance since ancient times until today. It contributes to other sectors, particularly, health, industry, services business, by creating raw materials and labor force. With the recent development in agriculturual practices, the agricultural sector, instead of using traditional method, carries out studies related to productivity and profitability, on macro and micro enterprise bases. In addition, the calculation of the livestock units, need to be monitored within the new account groups. The aim of the study is to calculate the product costs and to examine them within the Turkey Accounting Standards 41framework by determining the expenses of companie which involve in agriculture and livestock farming. At the end of the study, differences between The Uniform Chart Of Accounts and Turkey Accounting Standards 41 have been observed. In accordance with Turkey Accounting Standards 41, live assets and agricultural products should be presented at fair value in the financial statements. Reliable and realistic financial information will be provided as a result of the accounting process taking the biological changes of the livestock into account and reporting will be carried out thoroughly. In this context, some arrangements should be made on the existing Uniform Chart of Accounts.