Valuation of agricultural stocks
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Having qualified as a chartered accountant and run my own firm for some twenty years, I've always had to deal with this problem at every financial year-end. This time, I've decided to face up to the regulations and expose their limitations. The aim is to shake up these regulations. In the meantime, I'm proposing an alternative method that can still be perfected.the proposed method is based on criticism of the methods recommended by the general chart of accounts. this method does not reflect the true image of the farming business. the challenge is to find a method that allocates all expenses in...
Having qualified as a chartered accountant and run my own firm for some twenty years, I've always had to deal with this problem at every financial year-end. This time, I've decided to face up to the regulations and expose their limitations. The aim is to shake up these regulations. In the meantime, I'm proposing an alternative method that can still be perfected.the proposed method is based on criticism of the methods recommended by the general chart of accounts. this method does not reflect the true image of the farming business. the challenge is to find a method that allocates all expenses incurred according to objective and reasonable criteria. the problem with current regulations is that they allocate all expenses as advances to crops in stock. what about crops sold before the close of the financial year?
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