Economics / Accounting

 

Zhirova T.V., Zhukov D.A., Stafievskaya M.V.

Mari State University

Russia

 

Accounting for agricultural risk

 

The study was carried out with the financial support of the RFFI and the Government of the Republic of Mari El oblast in the framework of the scientific project No. 16-12-12001 (a) "Development of accounting and analytical support for risk management and risk reflection in the accounting (financial) statements of commercial organizations of the Republic of Mari El in crisis management ".

 

At agricultural enterprises, as a rule, attention is not paid to identifying factors of high production costs and loss-making, identifying reserves, improving a number of indicators, and as a result of this, unnecessary costs and production losses .

 At each enterprise, the organization and maintenance of a scientific and justified accounting of costs and calculation is necessary in conditions of risk and uncertainty, which will make it possible to optimize the results of production activities [2]. It is the reliability of information and sufficiency about the cost that is the competitive advantage of a commercial agricultural enterprise in management practice [3].

Agriculture is associated with seasonality, so in accounting we calculate the planned cost, bringing it at the end of the year to the actual [4]. The policy of any enterprise, as a rule, is aimed at reducing costs, but this aspect does not mean an increase in income. The actual costs are affected by the following risks:

- natural risks of a climatic nature

- risks of non-receipt of loan financing;

- risks of epidemics for animals;

- risks of competitiveness in terms of political risks;

- Risks of insufficient budget financing.

Thus, the actual cost of production can exceed the planned cost. In our opinion, it is necessary to include risks in the management accounting as an element of the cost item [1].

For this we can use the off-balance system of accounts, namely: account 010 "Agricultural risk" in the context of sub-accounts:

010.1 natural risks of a climatic nature;

010.2 risks of non-receipt of loan financing;

010.3 risks of epidemics for animals;

010.4 risks of competitiveness in terms of political risks;

010.5 risks of insufficient budget financing.

In the debit of these accounts, risk is assumed to be taken into account until the actual cost is identified and the relevant information is received from the risk manager [6].

The basis for maintaining this account is the proposed primary document "The off-balance sheet account of sectoral risk" (Fig. 1).

Type of risk: industry risk

Risk assessment: ___________ Date: ___________________

Accounting account D010.1, actual risk

Indicator

Date

Reason Amount

rub

………

 

 

 

Account credit 010.1:

 

 

 

 

Recognized risk: Date: _________________

 

Figure 1 - The off-balance sheet account of sectoral risk

To create a reserve at the expense of profit in financial accounting, the use of account 96 "Reserves of future expenses", subaccount "Agricultural risk" is recommended.

Subsequent reflection of the recorded risks in the financial statements will increase its transparency to attract investors[5].

 

References

 

1.                Gruby V.A., Pizengolts V.M., Saurenko T.N. The development of the national agro-industrial complex is the main direction of the country's food independence. - 2016. - No.10 (143). - Pp.39 - 42

2.                Sapozhnikov S.A. Analysis of the point of break-even production of agricultural products // Concept.- 2015.- Special Issue No.5.- Pp.1-5

3.                Mkhitaryan V.S., Sarycheva Т.V. Forecasting the employment of the population in the Russian Federation by types of economic activity // Questions of statistics.2017. No. 3. Pp. 18-29.

4.                Stafievskaya M.V. Methodology of formation of accounting and analytical support for risk management in the context of crisis management // Business. Education. Right. Bulletin of the Volgograd Institute of Business. 2016. No.3 (36). Pp. 115-120

5.                Stafievskaya M.V. Cost management: the procedure for calculating and accounting and analytical support of risk management in an agricultural enterprise // Aeconomy: Economics and Agriculture, 2017. № 7 (19).

6.                Stafievskaya M.V. Accounting reporting as a form of information support for the analysis of economic risks // Economics and Entrepreneurship. 2016. No. 8 (73). Pp. 1014-1017