Recognition of dairy cattle as biological asset in the annual reports of Estonian dairy farmers
2016
Visberg, A.-E., Estonian Univ. of Life Sciences, Tartu (Estonia). Inst. of Economics and Social Sciences | Parts, V., Estonian Univ. of Life Sciences, Tartu (Estonia). Inst. of Economics and Social Sciences
Annual reports are supposed to offer users of information relevant and true information about the assets of a reporting entity, biological assets included. Various methods can be employed to recognise biological assets in reports; however, the information supplied should be understandable for the users of report while also being compliance to minimum disclosure requirements. The article studies recognition of dairy cattle as a biological asset in the annual reports of Estonian dairy farmers. The aim of the article is to study the relevance of established hypotheses and explain whether recognition of dairy cattle in the annual reports of Estonian dairy farmers complies with the accounting practice of accounting entities and whether audit requirements, owners and structure of annual reports, applicable in Estonia, will have any effect on recognition of dairy cattle for reporting purposes. By general rule, annual reports observe the chosen accounting practice requirements for the purposes of recognition of dairy cattle. The study also confirmed the hypothesis that audited reports offer users of information a better overview of dairy cattle accounting principles and the pre-requisites that affect fair value but also more detailed information about the changes and adjustment of value of group of biological assets over the reporting period. Establishment of a standard structure for annual reports has ensured uniform format of such reports; however, the contents of such reports is not uniform, which makes comparison difficult.
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