The changes in biological assets is reported as a

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The changes in biological assets is reported as a whole in Change in the value of the growing stock just before operating profit (as in Tornator 2008) and the (calculated) operating profit is obtained. Moreover, under the above change, its change of subsets in allowable cut and in non- merchantable growing stock are disclosed separately. The allowable cut is the bank of the owner and thus the high point in reporting. After financial income and expense the official part of the closing of the books ends in Profit for the financial year. The rest is additional information for the owner. First, the impact in the value of the growing stock caused by stumpage price changes will be reduced from the fiscal profit in order to obtain sustainable (long-term) net profit, which is called Realised profit (see Hyder et al. 1999). Finally, the interest requirement of the forest- owner’s capital is reduced from the realised profit to obtain the Entrepreneur’s sustainable long- term net profit, which is an economic value added (EVA) type of result. In forestry, especially small-scale forestry, the fellings typically fluctuate greatly so that a size of a sale is typically clearly bigger than the annual net increase in the growing stock, but sales do happen even every second year. Information is thus needed to reveal various aspects of both the business and future business opportunities. Supplying only the profit for the financial year would even be dangerous where there are conflicts arising from inheritance or other reasons. Recall that Paterson (2001) suggested that only the impact of physical changes would be reported in the profit and loss. Australian recommendations require that the impact of physical changes be reported in the profit and loss, but that of price changes as changes of capital in reservations (Herbohn et al. 1998).Even the IASC draft of IAS 41 recognised the change in value due to price change as a non-owner capital adjustment (Herbohn and Herbohn 1998). Separate disclosure of physical and price changes is useful in appraising current period performance and future prospects, particularly when there is a production cycle of more than a year (cf. IAS41.51). Bare land Bare land can be valued according to historic cost (HC) or fair value (FV). Revaluations have been found to indicate improved future performance. (Barlev et al. 2007). Forest land can be described as ‘owner-occupied property’ in local circumstances and thus it does not belong to IAS 40 Investment Property but to IAS 16 Property, Plant and Equipment (IAS 40.9). Bare land belongs to the general class of Land and waters in Tangible assets. IAS 16 recognises that assets are measured initially at cost (IAS 16.15). The initial value cannot be obtained from such measures as the purchase price or the property valuation given in an inheritance process or from the taxation value. However, all these values stand for the whole property, not merely for bare land. Nearly all forest holdings in profitability book-keeping have been inherited and have only their(?) taxation value. An approach to obtaining the initial values is to use the price tables for bare land sites of
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