The Extent of Compliancewith International Accountingstandard (IAS) 41: The Case of SelectedAgri-tourismSites in Bohol, Philippines

Abstract

International Accounting Standard (IAS) 41 sets out the accounting provisions on the recognition, measurement, and required disclosures of biological assets (living plants and animals) in the financial statements. Adhering to the said standard makes the businesses' financial statements fairly stated. Thus, this study aimed to determine the extent of compliance with IAS 41 of the selected agri-tourism sites in Bohol. The study used a descriptive research design. Primary data was obtained using a researcher-made survey questionnaire and through personal interview. Three agri-tourism sites participated in the study. The accountant or equivalent was interviewed for each site. Findings revealed that the compliance level of selected agri-tourism sites in Bohol with IAS 41 is high in terms of recognition of gains and losses in the financial statements; low in the recognition of biological assets in the financial statements, and disclosure requirements; and non-compliant in the measurement of biological assets, and recognition of government grants in the financial statements. The reason for not complying is that they are not knowledgeable and not aware of the standard. It is recommended that the respondents will attend training and workshops on how to apply IAS 41 to improve the level of compliance with the provisions of IAS 41.

The Effect of Intellectual Capital, Industry Experience on the Application of Financial Accounting Standards in the Tourism Industry in Ambon City

“…Some related research may provide insight into the topic. One study [27] investigates the relationship between the level of intellectual capital disclosure and the mandatory adoption of international financial reporting standards (IFRS) in the high-tech sector in the UK. Other studies [28]- [30] examines the influence of intellectual capital from two perspectives, namely the performance of intellectual capital and the impact of intellectual capital on financial performance.…”