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Principle-Based Agricultural Business Accounting Policy Formation

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Business Challenges in the Changing Economic Landscape - Vol. 1

Part of the book series: Eurasian Studies in Business and Economics ((EBES,volume 2/1))

Abstract

The problem which this research is dedicated to prepare a methodology of accounting policy formation of agricultural business subjects which would allow the financial information to best meet the interests of potential investors. The idea of the research has emerged from choosing possibilities provided in the regulations, which form the financial accountancy of agricultural business subjects while evaluating the assets, liabilities, revenue and expenses of agricultural business subject and the asymmetry of provided information, which occur due to these reasons. The accounting policy of agricultural business subjects must be formed based on agency theory, which demands to satisfy the interests of users who employ such information, and signalling theory, which emphasizes the reliability of the information. Factors influencing the formation of accounting policy of agricultural business subjects are the following: chosen view towards the accounting policy; the specifics of activities of agricultural business subjects; possibilities to choose from accounting methods given in accounting regulations; the demands of investors in regards to the financial information in order the investors could make correct and timely management and investment decisions. The model, which reflects the inter-relations between factors, which influence the accounting policy formation of the agricultural business subjects, was prepared.

The results, introduced in this paper, are a part of research project supported by the Research Council of Lithuania, grant No. MIP-095/2014.

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Authors and Affiliations

  1. Department of Economics, Accounting and Finance, AleksandrasStulginskis University, Akademija, Lithuania

    Neringa Stonciuviene, Danute Zinkeviciene & Lina Martirosianiene

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  1. Neringa Stonciuviene
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  2. Danute Zinkeviciene
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  3. Lina Martirosianiene
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Correspondence to Neringa Stonciuviene .

Editor information

Editors and Affiliations

  1. Department of Labor Economics, Istanbul Medeniyet University Faculty of Economics, Uskudar - Istanbul, Turkey

    Mehmet Huseyin Bilgin

  2. MUFG Union Bank, San Francisco, California, USA

    Hakan Danis

  3. Unalan Mah. Unalan Sok., Istanbul Medeniyet University Faculty of Tourism, Istanbul, Turkey

    Ender Demir

  4. Eurasia Business & Economic Society, Fatih Istanbul, Turkey

    Ugur Can

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Stonciuviene, N., Zinkeviciene, D., Martirosianiene, L. (2016). Principle-Based Agricultural Business Accounting Policy Formation. In: Bilgin, M., Danis, H., Demir, E., Can, U. (eds) Business Challenges in the Changing Economic Landscape - Vol. 1. Eurasian Studies in Business and Economics, vol 2/1. Springer, Cham. https://doi.org/10.1007/978-3-319-22596-8_4

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