National accounting standards for agriculture and fair value-case of Albania

Dr. Albana Jupe, MSc. Rajmonda Biraci, MSc. Alda Taka

Faculty of Economics and Agribusiness, Agriculture University of Tirana, Albania

Abstract
The agricultural sector plays an important role in the economy of our country, while information system provided from accounting in this sector is being reformed. Development of accounting in European Union countries has undergone significant reflecting the impact of implementation of International Accounting Standards (IAS) later on, International Financial Reporting Standards. In Albania, the main information on agriculture refers to the inventory of live animals and plants (including forests as agricultural assets, which are recorded through the forest inventory). Further practices on entity’s biological assets recorded for tax purposes are treated according to the National Accounting Standard 13. The focus of this paper will be handling the fair value model in the evaluation of biological assets, namely the inclusion of loss and gain in the initial evaluation of these assets. Despite the difficulties that exist in practice for evaluating fair value, not taking into account the effects of fair value are significantly impacting the principles on financial reporting, on accuracy and comparability of information.
The interpretation of the accounting treatment under International Accounting Standard 41 and the National Accounting Standard 13, the results and findings of different authors’ on agricultural accounting and illustration through biological assets accounting treatment of a fish breeding farm will comprise material and methodology of this paper.