The Significance of Real Financial Reporting of Agricultural Mechanism in Relation to the Making of Management Decisions of Individual Farms and Medium-Sized Agricultural Enterprises

Abstract

The importance of realistic financial reporting depends on the consideration of numerous factors by the decision maker. In this paper, the authors focused on a comprehensive analysis of agricultural machinery in use by individual farms and medium-sized agricultural enterprises. The main conclusion reached by the authors would be that there are significant differences regarding the use of agricultural machinery in relation to its age, value, fuel consumption and its maintenance (p<0.0005*) in relation to the two forms of organizing agricultural production. Medium-sized agricultural enterprises use younger, more expensive agricultural machinery, as well as the fact that the owner's satisfaction with it is somewhat lower with lower fuel consumption and lower maintenance costs of agricultural machinery. The value of agricultural mechanization can be predicted both for individual farms based on the mentioned factors (F=262.901, p<0.0005) and for medium-sized agricultural enterprises (F=161.229, p<0.0005).