ACCOUNTING DEPARTMENT FACULTY OF ECONOMICS ANDALAS UNIVERSITY

This research is analyze the accounting guidance for agriculture producers in the US that is GAAP and european system which well known as IFRS. Should the US adopt International Financial Reporting Standards (IFRS), this guidance would be replaced with International Accounting Standard (IAS) 41 – Agriculture. This study identifies systematic differences between the US GAAP and IFRS for agricultural assets. The study also finds for both standard accounting recognition and reporting guidance result in dissimilar reporting due to guidance interpretation. Valuation variances and definition differences including the requirement to change the agricultural asset recognition method from historical cost to fair value continue to be the basis of major reporting differences. Overall, based on the fact US GAAP recognition and reporting guidance contains less information and is therefore less beneficial to financial statement users than the way IFRS. Keywords: Biological assets, US GAAP (PSAK 16), IAS 41, IFR