What will the Implementation of IFRS for SME bring for Agricultural Enterprises?

  • Hana Bohušová Mendel University in Brno
  • Patrik Svoboda Mendel University in Brno
Keywords: SME, IFRS for SMEs, Biological Assets, Agricultural Produce, Fair Value


The specific nature of agricultural activity compared to other business activities undertaken for profit requires different methodological approaches for its recoginition, measurement, recording and reporting. Since most farms in the EU are SMEs and standardization of financial reporting for these businesses in the form of the IFRS for SMEs has not yet been approved by the European Commission, special financial reporting of methodological approaches has not been applied in the agricultural sector yet. This contribution deals with the potential impact of implementation of IFRS for SMEs in agricultural activities and proposes possible methodological procedures for accounting solutions that are in accordance with the IFRS for SMEs, including indicators for evaluation of the impact of the financial analysis that are affected by the choice of methodological approach.