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Evaluation of applicability of IAS 41 - Agriculture to the valuation of growing forest stands and their accounting treatment in the Czech Republic

Author

Listed:
  • M. Stárová

    (Department of Trade and Finances, Faculty of Economics and Management, Czech University of Life Sciences Prague, Prague, Czech Republic)

  • H. Čermáková

    (Department of Trade and Finances, Faculty of Economics and Management, Czech University of Life Sciences Prague, Prague, Czech Republic)

  • T. Hlavsa

    (Department of Statistics, Faculty of Economics and Management, Czech University of Life Sciences Prague, Prague, Czech Republic)

  • H. Vostrovská

    (Department of Trade and Finances, Faculty of Economics and Management, Czech University of Life Sciences Prague, Prague, Czech Republic)

  • M. Levá

    (Department of Trade and Finances, Faculty of Economics and Management, Czech University of Life Sciences Prague, Prague, Czech Republic)

Abstract

The paper aims to evaluate the applicability of International Accounting Standard (IAS) 41 to the valuation of a growing stock of stands and entering its value in the corporate accounting system in the Czech Republic. In this context, IAS 41 is analysed in detail with focus on the method of reporting of the forest value in the accounting. At the same time a questionnaire survey is conducted among the forestry sector experts on the topic of willingness to report the forest value in statements. Based on the findings, an alternative solution to the application of IAS 41 to the forest accounting treatment, which would be potentially applicable, is proposed in the paper. The questionnaire survey (n = 317) has found that there is an increasing tendency towards the willingness to report the forest in the statements, especially in the organizations which simultaneously meet the statutory duty to disclose this value in the notes to the statements, and it is also recognized that this willingness does not depend on the legal form of organization.

Suggested Citation

  • M. Stárová & H. Čermáková & T. Hlavsa & H. Vostrovská & M. Levá, 2016. "Evaluation of applicability of IAS 41 - Agriculture to the valuation of growing forest stands and their accounting treatment in the Czech Republic," Journal of Forest Science, Czech Academy of Agricultural Sciences, vol. 62(9), pages 429-440.
    • Handle: RePEc:caa:jnljfs:v:62:y:2016:i:9:id:59-2016-jfs
    DOI: 10.17221/59/2016-JFS
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    References listed on IDEAS

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    1. Leonard Eckel & Steve Fortin & Kathryn Fisher, 2003. "The choice of discount rate for external reporting purposes: Considerations for standard setting," Accounting Forum, Taylor & Francis Journals, vol. 27(1), pages 28-59, March.
    2. Charles Elad, 2004. "Fair value accounting in the agricultural sector: some implications for international accounting harmonization," European Accounting Review, Taylor & Francis Journals, vol. 13(4), pages 621-641.
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