Considerations Regarding the Use of the Account 711 „Revenues Associated with the Costs of the Completed Production” in the Accounting of Biological Assets

Author:Univ.Lecturer Sorin-Constantin DEACONU, Ph. D.

JEL:M41, Q10, H30

DOI:

Keywords:incomes, expenditures, financial statements, economical benefits, biological assets

Abstract:
Productive activity in Romania is currently an acute issue which should be resolved in the near future in order to provide a framework for investment in agriculture. Accounting can support this process and improve the agricultural sector not only using its handy tools and processes. Thus, the account 711 is for the accounting practitioner but also for the accounting theorist a questionable element in what regards the effects of its use (for example, the income tax to be paid by the farm even if they have not been harvested agricultural assets). The paper propose a parallel analysis of accounts 711 and 722 to highlight the accounting differences while recommending the auditors to pay a special attention to "verify" these elements. The paper also presents several proposals in connection with the removal of bi-functional account 711 from the chart of accounts and its replacement with another account which will have the function of a liability account. All these proposals are carried out in order to facilitate the work of professional accounting and to improve the information presented in the balance sheet, financial statements etc.\r\n\r\n\r\n

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