New Opportunities for Farm Accounting

Posted: 4 Oct 2001

See all articles by Josep M. Argilés

Josep M. Argilés

Universitat Pompeu Fabra

John Slof

affiliation not provided to SSRN

Multiple version iconThere are 2 versions of this paper


This paper starts out to observe that there is a gap between the importance given to accounting and the low level of bookkeeping and accounting practice in the agricultural sector. Reasons for this gap are that current general accounting rules do not adapt very well to the particularities of farming and are difficult and expensive to implement. We then suggest that the Farm Accountancy Data Network (FADN) and the recently issued International Accounting Standard on Agriculture (IAS 41) could be key elements to improve the use of accounting in European farms. We review the main contributions of IAS 41 and conclude that it provides a strong conceptual framework but might need further instruments for its implementation in practice, given the limitations of the agricultural sector. We continue to explain that FADN is an experienced network that has elaborated very detailed farm accounting procedures, and suggest that these procedures could be turned into a guide for implementing IAS 41. We report empirical data which indicate that current FADN reports are already considered useful by farmers for different purposes. Finally, we analyze in detail the compatibility of IAS 41 and FADN, identifying changes in the FADN procedures that would become necessary if the FADN procedures were to be used for implementing IAS 41 and some aspects of FADN that might have been worthwhile to consider for the final version of IAS 41.

Keywords: Farm accounting, agriculture; FADN; RICA; International Accounting Standards; IAS 41

JEL Classification: M41, M44, M47

Suggested Citation

Argilés Bosch, Josep Maria and Slof, John, New Opportunities for Farm Accounting. Available at SSRN:

Josep Maria Argilés Bosch (Contact Author)

Universitat Pompeu Fabra ( email )

Ramon Trias Fargas 25-27
Barcelona, 08005
+34-93 542 24 05 (Phone)
+34-93 542 17 46 (Fax)

John Slof

affiliation not provided to SSRN ( email )

No Address Available

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