Theoretical Failure of IAS 41
5 Pages Posted: 15 Apr 2011
Date Written: April 13, 2011
The purpose of this study is to analyze the theoretical aspects of IAS 41: Agriculture. Based on the results of several other empirical studies, it turns out that the adoption impact of IAS 41 is not as good as expected. In addition, rejection on IAS 41 are appear as it causes volatility of income and misleading on taxation-related decisions. Also, other research states that IAS 41 has failed in achieving its objectives, which is to increase financial statement comparability in agricultural sector. These findings lead to a variety of questions, whether the principle of arrangement in IAS 41: Agriculture is theoretically correct?
Keywords: IAS 41, Accounting, IFRS, Agriculture
JEL Classification: M41, M40, M49
Suggested Citation: Suggested Citation