17. Problems in the Formation of the Financial Result Ensuing from the Management of Variable Biological Assets

Author: Elena Georgieva

DOI: 10.22620/agrisci.2011.07.017


The synchronization between accounting and tax legislation creates good opportunities for the development of market relations in agriculture. The variable biological assets are an important part of the production process in the branch. They are evaluated according to their value. This fact results in the formation of profit/loss that is not part of the tax financial result but of the accounting financial result. The analysis of this disparity reveals its influence on the economic agents. Possible ways are proposed with the only aim to diminish the distortion of the accounting information as a result of the contradiction between accounting and the tax legislation.