The Importance of Information through Accounting Practice in Agricultural Sector-European Data Network
Vazakidis Athanasios, Athianos Stergios and Ekaterini C. Laskaridou
DOI : 10.3844/jssp.2010.221.228
Journal of Social Sciences
Volume 6, Issue 2
Present study investigated the gap between accounting practices and the magnitude role of accounting information in the agricultural sector. Problem statement: Factors for this gap are: Current general accounting rules do not reflect the particularities of farming, the need of farm management, rural development and sustainability. The introduction of International Accounting Standard 41 (IAS 41) by International Accounting Standard Committee, Approach: With the Farm Accounting Data Network (FADN) in Europe, could be key elements to improve the use of agriculture accounting. Results: After mandatory and optional adoption for listed and non-listed small size companies, of IAS’s respectively, by EU at 2005, we conclude that the main contribution of IAS 41 is to provide a strong conceptual framework in agricultural accounting practice. Conclusion: FADN is an experienced data network, which could be a guide for implementing of IAS 41. Finally, we unfold IAS 41 statutory and FADN procedures grounding an informative frame for farm development policy.
© 2010 Vazakidis Athanasios, Athianos Stergios and Ekaterini C. Laskaridou. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.