Abstract: Although agriculture is an important part of the world
economy, accounting in agriculture still has many shortcomings. The
adoption of IAS 41 “Agriculture” has tried to improve this situation
and increase the comparability of financial statements of entities in
the agricultural sector. Although controversial, IAS 41 is the first
step of a consistent transition to fair value assessment in the
agricultural sector. The objective of our work is the analysis of IAS
41 and current accounting agricultural situation in Romania.
Accounting regulations in Romania are in accordance with European
directives and, in many respects, converged with IFRS referential.
Provisions of IAS 41, however, are not reflected directly in
Romanian regulations. With the increase of forest land transactions,
it is expected that recognition and measurement of biological assets
under IAS 41 to become a necessity.