Formation of the accounting policy for subsidies in agricultural companies: impact on financial results
Author | Affiliation | |
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LT | ||
Date |
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2016 |
Agricultural business has many specific features from which one of the most important is business subsidies. Agricultural companies use two types of subsidies - subsidies related to assets and subsidies related to revenue. The analysis of features and practical experience of accounting of subsidies in agricultural companies has led to conclusion that while forming the accounting policy for subsidies two options are possible - when subsidies are registered once they are received or when receivable subsidies are registered. The results of research show that subsidies accounted based on cumulative principle improve the financial indicators of agricultural companies comparing to the option of formation of accounting policy for subsidies when the subsidies are registered in accounting only when they are receive.
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