Financial reporting and its interpretation for management purposes in the agricultural environment

This study examines whether financial reporting, in its present state, complies with the modern farmer's need for efficient financial management. Although decision making is the ultimate outcome, the emphasis in this study is on the way the presentation and interpretation of financial reporting assist that outcome. The following issues are addressed to establish the usefulness of agricultural financial statements: (1) the nature and quality of current financial statements in agriculture (2) the stakeholders in need of financial management information (3) the methods used to acquire financial information for management purposes (4) new trends in the presentation of financial statements The following are some interesting facts emanating from the study: (1) Farmers must realise that they are principal users of their financial reports. (2) Financial decision making can only be done if financial statements are presented timeously, and are accurate and comprehensible. (3) Farm managers need to keep up with the changing financial and technological environment in which they operate.AuditingM.Comm (Accounting)