UNIFICATION OF ACCOUNTING PROCEDURES AS A BASIS FOR FORMATION OF CONSOLIDATED SEGMENTARY REPORTING OF AGROHOLDING

Abstract

The most important area of sustainable development of agricultural production is the development of agro-industrial integration, which is the economic, informational, organizational and technological association of the enterprises of agriculture with the processing, transportation, servicing and other entities. Complex multi-level management system, diversified operations, the wide geography of markets, territorial fragmentation of integrated agroformations’ participants demand higher information capacity of accounting and reporting, and the formation of discrete and relevant information on the separate components (segments) activities of agricultural holdings. Segments of agrostructure activity often include a plurality of interconnected companies that are legally independent entities, that makes it necessary to aggregate the registration information in the whole group of economic entities forming segment presented in the accounting and reporting as a single economic unit. In order to solve this problem, we developed a method of forming the consolidated information by segment feature based on a set of procedures for the four interrelated steps: 1) preparation – definition of reportable segments in accordance with the criteria of segmentation, development of uniform accounting policies for segmental reporting purposes, indicators and the format of segmental reporting; 2) basic – specification of parameters and format worksheets, tables and transformational forms of reporting, collecting the individual statements of the segments, the transformation of the individual reporting data from the analytical forms of the participants segment, followed by elimination of intergroups turnovers; 3) consolidation – the formation of summary reports and correction tables, consolidated statements, transfer of data from the consolidated statements to the form of segmental reporting; 4) analysis – verification of compliance with the principle of consistency and formulation of text explanations to the consolidated segmental information. The proposed method allows to form aggregated data on financial and economic activities of each segment, as a single entity managing the agricultural holding for the search of economic reserves, profitability, growth prospects for the business units, assessment of the level of competitiveness and attractiveness of the segments in the markets.

Keywords

• international standards of accounting and reporting
• segmentation
• by-segment information
• segmental reporting
• consolidated reporting