THE ASPECTS OF THE ACCOUNT OF WORKING AND PRODUCTIVE LIVESTOCK AS PART OF BIOLOGICAL ASSETS
Ключевые слова: БИОЛОГИЧЕСКИЕ АКТИВЫ; РАБОЧИЙ СКОТ; ПРОДУКТИВНЫЙ СКОТ; ПЛАН СЧЕТОВ; БУХГАЛТЕРСКИЙ УЧЕТ; BIOLOGICAL ASSETS; WORKING CATTLE; PRODUCTIVE LIVESTOCK; CHART OF ACCOUNTS; ACCOUNTING.
The information formed in the Russian accounting doesn’t reflect the specifics of the agricultural sector, including in a part accounting of biological assets, as a separate economic category of the company’s assets. In accordance with this there is a need for modernization of accounting, which determined the relevance and choice of the topic under consideration .
Due to the absence in a domestic accounting the separate standard regulating agricultural activities the accounting of working and productive livestock is carried out in accordance with Accounting regulations 6/01 «Accounting for fixed assets.» In accordance with the Regulations, the assets under consideration account for on account 01 «Fixed Assets» sub-account 4 «Working Livestock and productive livestock». The Russian practice of accounting for these groups of animals is contrary to International Standards, in particular IAS 41 «Agriculture», according to which the account of working and productive livestock should be kept on a separate account «Biological assets». Currently, working and productive livestock are recorded as fixed assets.
In the Russian accounting there is no very concept of a biological asset. In IAS 41 «Agriculture» the following definition is given: «Biological assets are animals or plants».
In our opinion, the definition in question doesn’t disclose the whole essence of biological assets, because not every animal or plant can be attributed to the assets of the agricultural enterprise. Thus, we formulated our own definition: «Biological assets are animals and plants used in agricultural activities for the purpose of obtaining products, additional biological assets and other economic benefits which are the result of past events, controlled by the enterprise and subject to quantitative and qualitative changes» [3, 4].
Just as the concept of a biological asset, Russian regulatory documents do not fix the definitions of working and productive livestock. We propose the following formulations:
Working cattle are agricultural animals that have the capacity for biological changes (consisting of a process of growth, degeneration, reproduction of their own kind) that can bring economic benefits used in the production process as a workforce for a long period of time (more than one production cycle) with specific Features (the need for feeding, care, susceptibility to diseases, etc.) and requiring special consideration .
Productive livestock are agricultural animals which have an ability to biotransformation, capable of bringing economic benefits involved in the production process for a long period of time (more than one production cycle) as a means of production of agricultural products based on natural biological processes .
The methodological basis for the recognition and accounting of biological assets is their classification.
We have proposed to supplement used by IAS 41 Classification on three criteria (for the period of use, in readiness of use and possible to get multiple agricultural products and / or additional biological assets) additional characteristics: economic content, by groups, by industry of agricultural production, according to varietal accessories and species composition, depending on the purpose of use, depending on the directions of use, depending on the rights of property , depending on the source of their origin, the degree of liquidity, depending on cultivation purposes .
The presented classification will promote more efficient accounting due to the possibility of combining biological assets into separate groups, which will simplify the process of determining fair value in an active market .
Due to the fact that IAS 41 «Agriculture» provides for accounting of biological assets separately from other assets of the enterprise, we have modified the working chart of accounts for domestic enterprises of the agro- industrial complex (Table 1) .
|№||Name of account||Account number||Number and name of sub-account|
|1||Amortization of fixed assets and non-current biological assets||02||2. Amortization of non-current biological assets
2.1. Amortization of own non-current biological assets
2.2 Amortization of leased non-current biological assets
|2||Non-current biological assets
|06||1. Non-current biological assets of the livestock sector
1.1. Working cattle
1.2. Productive cattle
2. Non-current biological assets of crop production
3. Disposal of non-current biological assets
|3||Investments in non-current assets
|08||6. Transfer of circulating biological assets into non-current
7. Acquisition of non-current biological assets
|4||Сirculating biological assets of the livestock sector
|11||1. Young growth of biological assets
2. Biological livestock assets on fattening
3. The bird
6. Families of bees
7. Young growth of biological assets transferred to citizens under contracts
8. Biological assets taken from the public for sale
9. Biological assets transferred for processing to the side
|5||Off-balance sheet accounts|
|6||013 Non-current biological assets leased from the third-party organizations|
|7||014 Non-current biological assets leased|
Thus, we have modified the following accounts:
Account 02 «Amortization of fixed assets» was converted to account 02 «Amortization of fixed assets and non-current biological assets» with the allocation of sub-accounts:
— sub-account 2.Amortization of non-current biological assets;
— sub-account 2.1.Amortization of own non-current biological assets;
— sub-account 2.2. Amortization of leased non-current biological assets.
Account 11 «Animals in growing and fattening converted into account 11 «Circulating biological assets of the livestock sector».
New accounts were allocated:
— account 06 «Non-current biological assets» with division into sub-accounts:
— sub-account 1. Non-current biological assets of the livestock sector;
— sub-account 1.1. Working cattle ;
— sub-account 1.2. Productive cattle;
— sub-account 2. Non-current biological assets of crop production;
— sub-account 3. Disposal of non-current biological assets.
Off-balance sheet accounts were added:
— account 013: Non-current biological assets leased from the third-party organizations;
— account 014: Non-current biological assets leased.
Using the proposed methodology will allow to organize separate accounting of non-current biological assets and circulating biological assets (livestock and crop production) with the valuation of them at fair value, which meets the requirements of IAS 41.
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