J. For. Sci., 2016, 62(9):429-440 | DOI: 10.17221/59/2016-JFS

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

M. Stárová1, H. Čermáková1, T. Hlavsa2, H. Vostrovská1, M. Levá1
1 Department of Trade and Finances, Faculty of Economics and Management, Czech University of Life Sciences Prague, Prague, Czech Republic
2 Department of Statistics, Faculty of Economics and Management, Czech University of Life Sciences Prague, Prague, Czech Republic

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.

Keywords: fair value; forestry accounting; International Accounting Standards, International Financial Reporting Standards; present value

Published: September 30, 2016  Show citation

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Stárová M, Čermáková H, Hlavsa T, Vostrovská H, Levá M. Evaluation of applicability of IAS 41 - Agriculture to the valuation of growing forest stands and their accounting treatment in the Czech Republic. J. For. Sci. 2016;62(9):429-440. doi: 10.17221/59/2016-JFS.
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