AN APPLICATION ON ESTABLISHING A PISTACHIO PRODUCTION ORCHARD AND ACCOUNTING FOR THE ACTIVITIES ACCORDING TO ACCOUNTING/FINANCIAL REPORTING STANDARDS

Abstract

TAS 41 Agricultural Activity Standard specifies accounting procedures and reporting principles for agricultural assets of companies operating in the agricultural field, regarding the harvested products or the harvested products, as well as government incentives with certain characteristics. Thus, with the implementation of TAS 41, it is to create a common financial reporting language in the international arena for the transactions of companies operating in the agricultural field. On the other hand, TAS 16 Tangible Fixed Assets Standard considers it as a carrier plant feature if it is used for the production or supply of agricultural products and is expected to yield more than one period. In this context, the process of establishing a pistachio production facility, accounting and reporting processes in accordance with TAS 41 and TAS 16 Standards are discussed. In the study, the activities of a company planning to establish a pistachio production orchard, on its idle land suitable for the construction of a pistachio orchard, and the activities that may occur after the establishment, as well as the establishment of the said orchard are discussed. In this context, the process of accounting for the activities that emerged from the beginning of the process in accordance with the standards constitutes the subject of the study. While the sample accounting records made in the study were accounted in accordance with TAS, the accounts in the “Draft Plan of Accounts in Accordance with Financial Reporting Standards” published by KGK on 13.12.2018 were used. In addition, in the study, it was assumed that government incentives were utilized during the establishment of the orchard to be established. Then, the accounting transactions of the conversion of the idle land into a pistachio orchard investment and the purchase of pistachio seedlings were made. The process of accounting for the maintenance of the seedlings growing after the establishment of the orchard and other operations performed after maintenance and in subsequent periods was discussed.