Inductive approach of the classic theory which

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inductive approach of the classic theory, which focuses the business transactions and emphasises the profit and loss statement, profit is based on realised and objective values.. The Finnish accounting tradition and its basis, the expenditure-revenue theory, represent the inductive approach. 2 The normative- deductive approach of the classic theory sees profit as the change in value of the enterprise and emphasises the balance sheet. The fair value accounting (FVA) and International Accounting Standards (IAS) 41, Agriculture, introduced in IAS (2002), represents the normative-deductive approach, emphasising the property valuation and the balance sheet. IAS 41 is contradictory to the realization principle, but changes in fair value are not revenue because they are not a gross inflow of economic benefits (Nobes 2006). Moreover, Butler (2001) discusses the implementation of IAS 41 and asks whether adopting IAS 41 would have the disadvantage of increasing taxable profits and reducing taxable losses. 2 The development of Finnish accounting has been rigorously described by Kettunen (1993) and Nasi and Nasi (1998) and Pirinen (2005). The expenditure-revenue theory has been explained by Pirinen (2005).
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Working Papers of the Finnish Forest Research Institute 93 9 Forestry accounting has a long tradition in Central Europe. The International Union of Forest Research Organizations IUFRO (1966), Wentzer (1972), the Deutscher Forstwirtschaftsrat (1980) and Eurostat (1987) have developed Chart of accounts for use in practice . Forestry accounting has been researched, and changes in the valuation of forest analysed by Openshaw (1980) and Davy (1987), among others. Forestry accounting in some European countries has been reviewed by Rochot (1984) and Jöbstl and Hogg (1997). Accounting for non-industrial private forestry has been developed from the German tradition and coping with continuous change by Hyder et al. (1994, 1997, 1999). Sekot (1998, 2000, 2001) and Sekot and Hellmayr (2000) have also developed profitability book-keeping network and data collection for small-scale forestry by Austrian contributions to forestry accounting has been compiled by Jöbstl (2005). Accounting for the forestry practice extension has been developed for jointly-owned forests (Penttinen 1992), accounting and ratio analysis (Kinnunen et al. 1993), for ratio analysis (Penttinen and Hakkarainen 1998) and cost accounting (Penttinen et al. 1995, 2001). Furuiro (1997) and Vincent (1999) have reviewed forest accounting at the national level, as Sekot (2007) has recently done within the EU Local national level forest accounts are maintained by Statistics Finland (2008), the contribution of which also covers environmental accounting (Kolttola and Muukkonen 1997). For the time being, the balance sheet has not traditionally been included in the closing of the books in forestry. However, the changes in property values have been recognised in the form of timber balance, which shows the difference between the planned and the actual cut (Hakkarainen et al.
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