ВІДОБРАЖЕННЯ ЗЕМЛІ У ЗВІТНОСТІ ЗА МСФЗ

Abstract

The article describes the theoretical principles and developed methodological and applied recommendations of alternative variants of reflecting land assets in accounting and reporting depending on their nature and ownership and generalization of IFRS requirements for land valuation.

The land is a unique object of accounting and has characteristic properties that are not repeated for other assets. The aim of the study is to summarize the requirements of IFRS for land valuation and the development of an algorithm for recognizing a land plot as a certain asset.

The principles of accounting and reporting of land are given in 10 different standards. There is no single standard, that establishes the procedure for assessing and recognizing land plots for accounting purposes. The definition of the category of "land" not given in any standard.

Agricultural enterprises usually use land in their activities. Therefore, they are forced to consider the full range of international standards in order to understand which line of the report and by what cost they should reflect the proper or leased land assets.

The procedure for reflecting land in accounting and reporting directly depends on the purpose of its use. For example, if a land asset is designed for use in the production process, services, needs of the administration or is necessary for sale, then it is reflected in fixed assets and must reflecting in accordance with the requirements of IAS 16 “Property, Plant and Equipment”. And if a land designed for the purpose of resale it will be reflected in inventories in compliance with the IAS 2 “Inventories”.  

Many scientists believe that leased land must be reflected in intangible assets. But this article justifies and proposes to highlight a separate group of assets that would reflect, that not all ownership of the land has passed to the economic entity.

The research reports of Ukrainian enterprises that lands are most often reflected in the form of fixed assets, investment property and sometimes combined assets.

The research substantiated that the lack of a definition and detailed instructions for land accounting indicates that land accounting may have particularity as depending on national legislation. This necessitates the development of an internal standard for land accounting, which conforms to IFRS.