Fair Value Accounting: Implementation Challenges Facing Small and Medium-Sized Entities in the Agricultural Sector

Abstract

Nowadays, the relevance of fair value in financial reporting is gaining impetus and recent discussions are moving in the trend of full fair value reporting. Small and medium-sized entities are not ignored in this instance. The move to new reporting standards results in various challenges for different interest groups such as auditors, preparers and regulators. The main objective of the study was to establish the fair value implementation challenges facing SMEs in the agricultural sector with evidence from regulatory bodies in Ghana. The study established that there is lack of methodological relationship between existing local laws and IFRS and absence of involvement of regulatory bodies in financial reporting standards setting. In light of these challenges, the study recommends involvement of regulatory bodies in standard setting and consideration should also be given to local laws when setting international standards.

An agricultural sector assessment of biological asset valuation challenges with inputs considered from valuers

“…Fair valued biological asset reporting in Ghana is affected by the mismatch between financial university training and that required for a professional valuation. The cost of implementing the fair valued reporting requirements; a lack of professional training; and the misalignment between Ghana laws and the reporting requirements signal current challenges experienced (Agyemang, Acheampong and Akenten;.…”

Impact of Fair Value Accounting on Biological Assets in Agricultural Sector in Nigeria

“…Depending on accounting standards of the country, agricultural products are valued at fair value or historical costs [9]. Hence, it constitutes a hypothetical market price under idealized market environment.…”