MANAGEMENT OF JOINT-STOCK COMPANIES AND FARMS BY USING FAIR VALUE OF AGRICULTURAL EQUIPMENT IN FINANCIAL STATEMENTS ON THE EXAMPLE OF IMT 533 TRACTOR
DOI:
https://doi.org/10.5937/ekoPolj1901035RKeywords:
fair value, agricultural machinery, tractors, financial reportAbstract
More demanding management requires management to foster the application of different mechanisms. One of the upcoming ways of improving management is the use of the fair value of property and equipment in the business books of the company. The authors of this study emphasize the importance of fair valuation of agricultural equipment, processing surveyed 382 legal entities of the Republic of Serbia, in the case of widespread tractor IMT 533 agricultural holdings in 207 and 175 joint-stock companies. To show the real application of fair value, the research period lasted from 2015 to 2018. We came to the basic conclusion that there is a statistically significant relationship between organizations, enterprises and the age of the tractor to the application of the fair value of the tractor in the business books of the company. There is also a conclusion that fair financial reporting brings about benefits to agricultural entities of other legal forms.
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References
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32. Nowak, A., Janulewicz, P., Krukowski, A. & Bujanowicz-Haraś, B. (2016): Diversification of the level of agricultural development in the member states of the European Union. Cahiers Agricultures, 25: 55004 https://doi.org/10.1051/cagri/2016040
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34. Popović, S., Mijić, R. & Grublješić, Ž. (2014a): Internal control and internal audit in the function of management, Škola Biznisa, 1, 95-107. [in Serbian: Popović, S., Mijić, R. i Grublješić, Ž. (2014a): Interna kontrola i interna revizija u funkciji menadžmenta, Škola Biznisa, 1, 95-107].
35. Popović, S., Majstorović, A. and Grublješić Ž. (2015). Valuation of facilities in use and application of international accounting standards, Аctual problems of economics, 3(165): 379-387. https://eco-science.net/en/downloads
36. Popović, S., Đuranović, D., Laban, B., Ivić, M., Jovin, S., Nastić, S., Grublješić, Ž. & Popović, V. (2018). Impact of different light intensity on the production of the plant narcissus l. and its financial effects, Economics of Agriculture, 4: 1359-1370. doi:10.5937/ekoPolj1804359P
37. Rodriguez, M., Miguel, Sanchez, L., Cejudo, E. & Antonio, C. (2019): Variety in local development strategies and employment: LEADER programme in Andalusia. Agric. Econ. – Czech, 65: 43-50 https://doi.org/10.17221/106/2018-AGRICECON
38. Soltani, B. (2009). Audit, International Approach, Mate, Zagreb. [in Serbian: Soltani, B. (2009). Revizija, Međunarodni pristup, Mate, Zagreb].
39. Smith, J., & Weeks, J. (2018). Bringing democratic choice to Europes economic governance: the EU treaty changes we need, and why we need them. Journal of Self-Governance & Management Economics, 6(3)
40. Turjačanin, V. & Čekrlija, Đ. (2006). Basic statistical methods and techniques in SPSS-U. Centar za kulturni i socijalni popravak, Banja Luka [in Serbian: Turjačanin, V. i Čekrlija, Đ. (2006). Osnovne statističke metode i tehnike u SPSS-U, Centar za kulturni i socijalni popravak, Banja Luka].
41. Wang, D. (2019): Manufacturing and agricultural pollution, private mitigation and wage inequality in the presence of pollution externalities. Agric. Econ. – Czech, 65: 51-58 https://doi.org/10.17221/79/2018-AGRICECON
42. Williams, C. (2010). Principles of management, DataStatus, Belgrade. [in Sebian: Williams, C. (2010). Principi menadžmenta, DataStatus, Beograd].
2. Arena, M., Arnaboldi, M., Azzone, G. (2006): Internal audit in Italian Organizations: a Multiple Case Study. Managerial Auditing Journal. 21(3): 275-292. DOI: 10.1108/02686900610653017
3. Arena, M., & Azzone, G. (2007): Internal Audit Departments: Adoption and Characteristics in Italian Companies. International Journal of Auditing. 11(2): 91-114. https://doi.org/10,1111/j1099-1123.2007.00357.x
4. Argilés, J., & Slof, E. (2001): New opportunities for farm accounting. European Accounting Review. 10: 361–383. 27. https://www.researchgate.net/publication/281239788_
5. Bagdonavicius, V. & Nikulin, M. (2011): Chi-squared goodness-of-fit test for right censored data. International Journal of Applied Mathematics and StatisticsTM 24(SI-11A): 30-50. http://www.ceser.in/ceserp/index.php/ijamas/article/view/627
6. Barker, R. & McGeachin, A. (2013): Why is there inconsistency in accounting for liabilities in IFRS? An analysis of recognition, measurement, estimation and conservatism. Accounting and Business Research. 43(6): 579-604. https://doi.org/10.1080/00014788.2013.834811
7. Baráth, L. & Fertő, I. (2017): Productivity and Convergence in European Agriculture. Journal of Agricultural Economics, 68: 228-248 https://doi.org/10.1111/1477-9552.12157
8. Barlev, B. & Haddad, J. (2003): Fair value accounting and the management of the firm. Critical Perspectives on Accounting. 14: 383-415. DOI: 10.1016/S1045-2354(02)00139-9
9. Boukalova, K., Kolarova, A. & Lostak, M. (2016): Tracing shift in Czech rural development paradigm (Reflections of Local Action Groups in the media). Agricultural Economics (Zemědělská ekonomika), 62: 149-159 https://doi.org/10.17221/102/2015-AGRICECON
10. Bozzolan, S., Laghi, E. & Mattei, M. (2016): Amendments to the IAS 41 and IAS 16 – implications for accounting of bearer plants. Agric. Econ. – Czech. 62: 160-166. https://doi.org/10.17221/48/2015-AGRICECON
11. Bratten, B. - Jennings, R. - Schwab, C. (2016): The accuracy of disclosures for complex estimates: Evidence from reported stock option fair values. Accounting, Organizations and Society. 52: 32-49. https://doi.org/10.1016/j.aos.2015.09.001
12. Brousseau, C., Gendron, M., Belanger, P. & Coupland, J. (2014): Does fair value accounting contribute to market price volatility? An experimental approach. Accounting & Finance. 54(4): 1033–1061. https://doi.org/10.1111/acfi.12030
13. Brown, P. - Szimayer, A. (2008): Valuing executive stock options: performance hurdles, early exercise and stochastic volatility. Accounting & Finance. 48(3): 363-389. DOI: 10.1111/j.1467-629X.2008.00259.x
14. Cai, F. & Wong, H. (2010): The effect of IFRS adoption on global market integration. International Business & Economics Research Journal. 9(10): 25-34. https://www.researchgate.net/publication/296622836
15. Cantino, V. (2009). Corporate governance, performance measurement and regulatory compliance of the internal control system. DataStatus, Belgrade. [in Serbian: Cantino, V. (2009). Korporativno uptravjanje, merenje performansi i normativna usaglašenost sistema internih kontrola. DataStatus, Beograd].
16. Catuogno, S. - Arena, C. - Saggese, S. - Sarto, F. (2016): The Influence of Blockholders, Bondholders and Families on the Venturers Accounting Behavior. International Journal of Business and Management. 11(8): 31-43. https://www.researchgate.net/publication/305487345
17. Christensen, B. - Glover, S. - Wood, D. (2012): Extreme Estimation Uncertainty in Fair Value Estimates: Implications for Audit Assurance. AUDITING: A Journal of Practice & Theory. 31(1): 127-146. https://aaapubs.org/doi/abs/10.2308/ajpt-10191?journalCode=ajpt
18. Daske, H. - Hail, L. - Leuz, C. - Verdi, R. (2008): Mandatory IFRS Reporting Around the World:Early evidence on the economic consequences. Journal of Accounting Research. 46: 1085-1142. http://ssrn.com/abstract=1024240
19. Dax, T. & Oedl-Wieser, T. (2016): Rural innovation activities as a means for changing development perspectives An assessment of more than two decades of promoting LEADER initiatives across the European Union. Studies in Agricultural Economics, 118, 30-37 https://doi.org/10.7896/j.1535
20. Durocher, S. - Gendron, Y. (2014): Epistemic commitment and cognitive disunity toward fair-value accounting. Accounting and Business Research. 44(6): 630-655. https://doi.org/10.1080/00014788.2014.938012
21. Gaetano, S. & Lamonaca, E. (2019): On the drivers of global grain price volatility: an empirical investigation. Agric. Econ. – Czech, 65: 31-42 https://doi.org/10.17221/76/2018-AGRICECON
22. Guthrie, K. - Irving, J. - Sokolowsky, J. (2011): Accounting Choice and the Fair Value Option. Accounting Horizons. 25(3): 487-510. https://doi.org/10.2308/acch-50006
23. Endaya, K. - Hanefah, M. (2013): Internal Audit Effectiveness: An Approach Proposition to Develop the Theoretical Framework. Research Journal of Finance and Accounting. 4(10): 92-102. https://www.researchgate.net/publication/328095795
24. Feleagă, L. - Feleagă, N. - Răileanu, V. (2012): Theoretical considerations about implementation of IAS 41 in Romania. Theoretical and Applied Economics. 2: 31–38. http://store.ectap.ro/articole/686.pdf
25. Florou, A. - Kosi, U. - Popoe, P. (2016): Are international accounting standards more credit relevant than domestic standards?. Accounting and Business Research. 46(7): 1-29. https://doi.org/10.1080/00014788.2016.1224968
26. Funnell, W. - Wade, M. - R. Jupe. (2016): Stakeholder perceptions of performance audit credibility. Accounting and Business Research. 46(6): 601-619. https://doi.org/10.1080/00014788.2016.1157680
27. Greuning, H. (2006). International Financial Reporting Standards, Practical guide. MATE, Zagreb. [in Serbian: Greuning, H. (2006). Međunarodni standardi finansijskog izveštavanja, Praktični vodič. MATE, Zagreb].
28. Kijek, A., Kijek, T., Nowak A. & Skrzypek, A. (2019): Productivity and its convergence in agriculture in new and old European Union member states. Agric. Econ. – Czech, 65: 01-09 https://doi.org/10.17221/262/2017-AGRICECON
29. Kuo, K., Lee, C. & Wu, S. (2018): environmental policy and labour market imperfection. Bulletin of Economic Research, 70: 175-184 https://doi.org/10.1111/boer.12122
30. Lee, J. (2019): Regional heterogeneity among non-operating earnings quality, stock returns, and firm value in biotech industry. Agric. Econ. – Czech, 65: 10-20 https://doi.org/10.17221/24/2018-AGRICECON
31. Novaković, S., Vukasović, D., Laban, B.,Ivić, M., Popović, V. & Popović, S. (2018). Managing agricultural company by using internal control and significance of risk presentation, Economics of Agriculture, 2: 801-812. doi:10.5937/ekoPolj1802801N
32. Nowak, A., Janulewicz, P., Krukowski, A. & Bujanowicz-Haraś, B. (2016): Diversification of the level of agricultural development in the member states of the European Union. Cahiers Agricultures, 25: 55004 https://doi.org/10.1051/cagri/2016040
33. Popović, S. (2014). Socio-economic factors limiting the development of agrarian, Feljton, Novi Sad. [in Serbian: Popović, S. (2014). Socio-ekonomski faktori ograničenja razvoja agrara, Feljton, Novi Sad].
34. Popović, S., Mijić, R. & Grublješić, Ž. (2014a): Internal control and internal audit in the function of management, Škola Biznisa, 1, 95-107. [in Serbian: Popović, S., Mijić, R. i Grublješić, Ž. (2014a): Interna kontrola i interna revizija u funkciji menadžmenta, Škola Biznisa, 1, 95-107].
35. Popović, S., Majstorović, A. and Grublješić Ž. (2015). Valuation of facilities in use and application of international accounting standards, Аctual problems of economics, 3(165): 379-387. https://eco-science.net/en/downloads
36. Popović, S., Đuranović, D., Laban, B., Ivić, M., Jovin, S., Nastić, S., Grublješić, Ž. & Popović, V. (2018). Impact of different light intensity on the production of the plant narcissus l. and its financial effects, Economics of Agriculture, 4: 1359-1370. doi:10.5937/ekoPolj1804359P
37. Rodriguez, M., Miguel, Sanchez, L., Cejudo, E. & Antonio, C. (2019): Variety in local development strategies and employment: LEADER programme in Andalusia. Agric. Econ. – Czech, 65: 43-50 https://doi.org/10.17221/106/2018-AGRICECON
38. Soltani, B. (2009). Audit, International Approach, Mate, Zagreb. [in Serbian: Soltani, B. (2009). Revizija, Međunarodni pristup, Mate, Zagreb].
39. Smith, J., & Weeks, J. (2018). Bringing democratic choice to Europes economic governance: the EU treaty changes we need, and why we need them. Journal of Self-Governance & Management Economics, 6(3)
40. Turjačanin, V. & Čekrlija, Đ. (2006). Basic statistical methods and techniques in SPSS-U. Centar za kulturni i socijalni popravak, Banja Luka [in Serbian: Turjačanin, V. i Čekrlija, Đ. (2006). Osnovne statističke metode i tehnike u SPSS-U, Centar za kulturni i socijalni popravak, Banja Luka].
41. Wang, D. (2019): Manufacturing and agricultural pollution, private mitigation and wage inequality in the presence of pollution externalities. Agric. Econ. – Czech, 65: 51-58 https://doi.org/10.17221/79/2018-AGRICECON
42. Williams, C. (2010). Principles of management, DataStatus, Belgrade. [in Sebian: Williams, C. (2010). Principi menadžmenta, DataStatus, Beograd].
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Published
2019-03-25
How to Cite
Radović, M., Vitomir, J., Laban, B., Jovin, S., Nastic, S., Popovic, V., & Popovic, S. (2019). MANAGEMENT OF JOINT-STOCK COMPANIES AND FARMS BY USING FAIR VALUE OF AGRICULTURAL EQUIPMENT IN FINANCIAL STATEMENTS ON THE EXAMPLE OF IMT 533 TRACTOR. Economics of Agriculture, 66(1), 35–50. https://doi.org/10.5937/ekoPolj1901035R
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