Boltaev Abror Sayitmuradovich,
PhD, Head of “Accounting” department of Fiscal Institute,
Tashkent, Republic of Uzbekistan. E-mail: abrorboltayev.83@gmail.com
ORCID: 0000-0003-4198-7983
Abstract: This article covers the issues of improving the accounting of fixed assets. In particular, the article presents considerationss, approaches and suggestions on improving the theoretical, organizational and methodological foundations of accounting related to the calculation, accounting and reflection of depreciation on the fixed assets in agricultural activities by business entities. In the article, business entities operating in our republic today are divided into two categories according to the order of accounting and financial reporting. In business entities of the first category, perennial plants are recognized as fixed assets in accordance with NAS № 5 “Fixed assets”, are evaluated, accounted for and reflected in financial statements. This article reveals the main rules of the current legislation on the calculation of depreciation for perennial plants and their differences for accounting and taxation purposes through a comparative analysis. At the same time, the article describes the issue of calculating depreciation of perennial plants and reflecting it in financial statements in the second category of business entities. In particular, only if biological assets are used in a business entity for the purpose of selling, converting them into agricultural crops or additional biological assets, they are included in the scope of application of the International Accounting Standard (IAS) № 41 “Agriculture” and are recognized as fixed assets. If these fixed assets do not comply with the requirements they are accounted in accordance with IAS № 16 “Fixed Assets”. That is, such assets are considered productive plants according to IAS. These may include tea plants, vineyards, fruit trees and rubber trees. However, agricultural products obtained from them are included in the scope of application of IAS № 41. Moreover, biological assets recognized as fixed assets and depreciable based on international financial reporting standards and depreciation methods in a classified manner.
Keywords: agriculture, agricultural activity, fixed asset, biological asset, perennial plants, productive plants, agricultural product, depreciation, depreciation calculation method.