TITLE: 

Accounting prospects for the agricultural sector

AREA: Accounting
CITATION: Ávila Corona, M. (2021, 2 febrero). Accounting prospects for the agricultural sector.
Contaduría Pública. Recuperado 2 de noviembre de 2021, de
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agropecuario/?fbclid=IwAR2at_AKnre-xWQ5XMR-
aDtEtYcNrtTDeSnM9lFaSNlihmPbQWgxy3ekKv8
URL:  https://contaduriapublica.org.mx/2021/02/02/perspectivas-contables-del-sector-
agropecuario/?fbclid=IwAR2at_AKnre-xWQ5XMR-
aDtEtYcNrtTDeSnM9lFaSNlihmPbQWgxy3ekKv8

PERSONAL COMMENTS (200-250 words)  This article talks about the agricultural sector, its main objective
or purpose of the agricultural sector, is the exploitation and use
 What did you learn from the study?  of natural resources of plants and animals, to satisfy the agri-
 How might you apply the information in food needs of the country. These economic activities, along
your academic training?  with others closely linked to the food industries, are the most
 How this study relate to your field of  significant in rural areas and in the production and value chains
preparation?  that derive from it. Turning to the subject of accounting, it
touches a subject closely related to this area of work, we refer
to the FIS, which its full name or what they are called are the
Financial Information Standards, which serve to structure the
accounting theory and They allow the establishment of limits
and offer a regulatory framework for the presentation and
issuance of financial information. Farm accounting is the
starting point for obtaining reliable information on all and each
of the production processes, with the establishment of
adequate controls and generation of reliable information for
decision making; there fore the whole sector agriculture must
make use of accounting, whatever the importance or branch of
its exploitation. The subject of GDP (gross domestic product) is
discussed, and also a practical case elaborated with the first
valuation option in the international regulations and those that
the NIF indicates as applicable in the event to have the
respective values.
It helps us who study accounting to know that this area is seen
in many places and the things that are used to manage it in the
agricultural area.
 SUMMARY  1.- It tells us that the agricultural sector represents 3.1% of total
INTRODUCTION (1-3 sentences)  production with an approximate value of 2.2 trillion dollars.
 give a brief introduction to give the nec 2.- It tries to implement a new FIS specialized in the agricultural
cessary  background to the study and  sector.
state its purpose. 
 Why was the study conducted? 
 What was it about?

  1.- What the agricultural sector represents in the country's

PROCEDURES (3-5 sentences)   economy.
 describe the specifics of what this  2.- The participation of the primary sector in the Product
study involved Gross Domestic (GDP) has fallen substantially in recent
 Who were the subjects?  decades due to stagnant productivity, effects of climate
 What was measured?  change, rural poverty, scarce and expensive financing,
 What was being compared? 
vulnerability to market risks, impacts of the virus called SARS-
CoV-2 in
the world economy during 2020, legal-institutional framework.
3. The accounting regulation of these activities has its origin in
IAS 41 Agriculture.

FINDINGS(3-5 sentences)  1.- It is highlighted that in the IAS the crop is specifies that it is
 Discuss the major findings and results.  for cycle plants annual, without there being such a distinction in
 How useful or significant is this?  local regulations. Both regulations (NIF E-1 and IAS 41)
 What did the author say about it?  consider within the agricultural activity to the breeding of
aquatic species.
2.- It is relevant to take into account that, in the case of
international regulations, bearer plants do not include animals
and these are also regulated by another standard other than
IAS 41.
3.- On the other hand, FIS E-1 does establish a division of
producing biological assets: plants and animals, specifying
rules for treatment accounting for both.
CONCLUSIONS (3-5 sentences)  1.- FIS E-1 considers risks as information to reveal. Activity
 Summarize the researcher’s agriculture is exposed to climatic risks, diseases, and other
conclusions.  natural risks, therefore, they must reveal the events that
 What was the major outcome of the  originated a significant expense due to the occurrence of these,
study?  as well as the management strategies to mitigate their effect.
2.- By on the other hand, IAS 41, in paragraph 49, states that
the entity must disclose risk management strategies financial
 related to agricultural activity.
3.- The Ministry of Agriculture and Rural Development has
stated that there are sufficient inventories to continue
supporting the product supply chain agri-food; However, the
National Agricultural Council (CNA) estimates a growth of 2%
for the sector in 2020, compared to the initial forecast of 4.5%,
mainly due to the decrease in large consumers (hotels and
restaurants), with the present challenge of channeling the
growth of the sector in the face of economic reactivation.
Lexicon: (10 words) 1.- Agricultural sector: Refers to the agricultural sector and
the livestock or livestock sector. These economic activities,
together with others closely linked to the food industries, are
the most significant in rural areas and in the production and
value chains that derive from it.
2.- Natural resources: Any product of nature, material, or
energy, that serves to meet the biological needs of the human
being, to develop an economic activity, or to satisfy social
demands.
3.- FIS: Financial Information Standards. They serve to
structure the accounting theory and allow the establishment of
limits and offer a regulatory framework for the presentation and
issuance of financial information.
4.- Rural Development: Process that seeks social change and
sustainable economic growth for permanent progress in the
rural community.
5.- Gross Domestic Product: It is the total value of the final
goods and services produced by a country, during a defined
time.
6.- IAS 41: Establishes the accounting treatment for biological
assets during their growth, degeneration, production and
procreation, and for the initial measurement of agricultural
produce at the point of harvest.
7.- SARS-CoV-2: Virus that causes a respiratory illness called
coronavirus disease 2019 (COVID-19).
8.- National Agricultural Council: It is a Civil Association with
a national character and voluntary affiliation that depends on
the Business Coordinating Council since its foundation, on April
27, 1984. Its objective is to represent, defend and promote
agricultural activity.
 9.- IAS: International Accounting Standards. They are
standards in which information to be presented in the financial
statements of companies is established.
10.- Economy: Science that studies resources, the creation of
wealth and the production, distribution and consumption of
goods and services, to satisfy human needs.

Student’s name: Karla Vanessa Palomares Álvarez ARTICLE Nº: 3

Introduction: Let us remember that the agricultural sector is a subsector that is integrated into
the primary sector. This is made up of those activities that comprise the agricultural sector, or
agricultural practice, and the livestock sector, also known as the livestock sector. It is a
fundamental part of the economy, its importance lies in the ability to generate basic food items,
as well as raw materials and sources of employment, this being the key to the development of
the productive sectors of the economy. The accounting regulation of these activities has its
origin in IAS 41 Agriculture, issued by the then IASC (International Accounting Standards
Committee) predecessor of the current IASB (International Accounting Standards Board),
which adopted the standard in 2001 and issued a revised version in 2003. A NIF was
implemented due to the importance of these activities, it is important to emphasize that NIF are
a set of general concepts and particular standards that regulate the presentation and
preparation of the information included in the financial statements of an entity and they are
related to accounting. In relation to the recognition of government subsidies on biological
assets, the NIF admits applying a consistent accounting policy in two options: recognizing said
subsidy as a decrease in the cost or as income, depending on the circumstances of the entity.
Conclusion: As we can see, accounting is useful in many sectors, in this case we are talking
particularly about the livestock sector, it is one of the oldest and most relevant sectors in the
economy. In the rural world, the agricultural sector includes those activities that, in a certain
way, constitute the main economic engine of said territory. It contributes to the compensation
of the need for food, also to the prosperity of the citizens and to the industry and economy of
the country. Subsidies are given for quality, fertility and rural development in the agricultural
sector so that the growing population is nourished in a regular and healthy way. Talking about
the subject of accounting, concepts related to it were touched, such as the Financial
Information Standards, the decisions are used to structure the accounting theory and allow to
establish limits and offer a regulatory framework for the presentation and issuance of financial
information. Also, the Gross Domestic Product and other economic concepts. They show us
the difference between Financial Reporting Standards and International Accounting Standards,
the transactions are quite a few, but they also have some similarities. A practical exercise was
developed where the first valuation option could be seen in the international regulations and
those that the NIF indicates as applicable in the event of having one's own values.
Reconciliations were made, balance sheet and income statement, registered searches, are
part of the financial statements of accounting.