The forest management plans fmps of the book keeping

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The forest management plans (FMPs) of the book-keeping farms enable the evaluation of the growing stock and bare land in the closing of the books. The system constructed in recent years in cooperation with MTT Agrifood Research Finland and the FFRI is based on growing stock data updated by the NettiMELA service (Nuutinen and Kettunen 2005) ( mela/ ). This data is combined with the forestry book-keeping data of the MARTTI profitability book-keeping system. The system produces the present values of bare land and growing stock for the balance sheet. When the values of other properties are also present values, the balance sheet describes the present value of the forest property in all its parts. Accordingly, the change in the forest property can be taken into account in the profit and loss statement, so that the net profit is based on annual change in the growing stock and wood sales. The International Accounting Standards (IAS) 41 Agriculture of the EU relies on fair value accounting (FVA), which is enabled here by the relatively new forest inventory data of the forest management plan (FMP) for each forest holding. Moreover, the owners have reported all updates, such as fellings and silvicultural activities, after the forest inventory. The constructions rely on the MARTTI profitability book-keeping system (MARTTI 2008) of the MTT Economic Research and on the MELA forest management planning system (Redsven et al. 2004) of the Finnish Forest Research Institute (FFRI). These information systems have been integrated via the Internet using the XML protocol and service procedures established for book-keeping farms (Figure 2). Figure 2. The use of forest management plan (FMP) data in forestry accounting. (Source: Agrifood Research Finland.) MELA-system Other forest accounting data: - receipts - expenditures - assets, debts - labour input - own/farm use - etc. FMP with the stand and tree stratum information Annual reports Input-data for MELA (xml-format) Output-data (xml-format) Balance sheet Profit and loss account Closing of accounts Book-keeping farm Summary variables: - value/change of growing stock and bare land Stumpage price information Stand treatments (management events) Forest Research Institute Updated data by stand and tree stratum as input data for Martti-system
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Working Papers of the Finnish Forest Research Institute 93 7 The accounting system developed enables calculation of economic figures and ratios concerning farm forestry . Profitability book-keeping data and results serve entrepreneurs and political decision-making and are employed in research, agricultural administration, economic consulting, advising, financing, interest supervision and agricultural education. ‘Empirical studies confirm the significant incremental value of information provided by accounting and that accounting-based information is an important tool for assessing farm viability’ according to Argilés (2001), which
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