Accounting in Agriculture: Disclosure practices of listed firms

• Type: Academic Work
• Date: 2014

Authors

Patrícia Teixeira Lopes (Author) FEP; Rute Gonçalves (Author) FEP

Scientific classification

FOS: Social sciences > Economics and Business

CORDIS: Social sciences > Economics > Management studies > Financial management

Other information

Abstract (EN): This paper analyzes accounting in agriculture under the International Accounting Standard (IAS) 41 ¿ Agriculture of 270 listed firms worldwide that have adopted International Financial Reporting Standards (IFRS) until 2010. Previous empirical evidence on the implementation of this standard is still very scarce. In general it shows that the disclosure level is low and that comparability is missing. In order to extend previous research on disclosure practices under the IAS 41, an index of the disclosure of biological assets is constructed and calculated based in the 2011 annual report. This paper tests several hypotheses relating the index and firm-level determinants - biological assets intensity, ownership concentration, firm size, auditor type, internationalization level, listing status, profitability and sector ¿ and country-level determinant - legal status. This variable is measured using two different proxies, following institutional country classification, namely the dichotomy common law versus code law countries and cluster classification (Leuz, 2010). It was found that the mandatory and voluntary disclosure of biological assets is influenced by biological assets intensity, ownership concentration, firm size, sector and legal status. This paper seeks to help standard setters to better understand disclosure practices and their determinants concerning biological assets, and to develop future projects on this issue.

Language: English

Type (Professor's evaluation): Scientific

Notes: http://wps.fep.up.pt/wps/wp530.pdf