Table 3 the balance sheet of 28 forest holdings panel

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Table 3. The balance sheet of 28 forest holdings (panel data) in the 2004 and 2005 fiscal years. Year 2004 2005 Number of farms 28 28 28 Average forest area, ha/farm 83.82 84.44 Per cent Assets Eur/farm Eur/ha Eur/farm Eur/ha Non-current assests Tangible assets Land and waters 12,410 148 10,710 127 3 Buildings 142 2 133 2 0 Machinery and equipment 892 11 1,373 16 0 Non-merchantable growing stock 225,761 2,693 233,128 2,761 65 Other tangible assets 1,122 13 1,010 12 0 Investments Bonds and shares 4,959 59 5,344 63 2 Current assets Stocks Materials and supplies 1 0 6 0 0 Allowable cut (work in progress) 108,062 1,289 105,967 1,255 30 Finished products 1,071 13 1,139 13 0 Other inventories 0 0 0 0 0 Other current assets Receivables and financial assets 43 1 183 2 0 Total assets 354,462 4,229 358,992 4,251 100 Equity and liabilities Equity Forest-owner’s capital 316,518 3,776 324,168 3,839 90 Revaluation surplus 8,672 103 6,972 83 2 Voluntary reserves 964 11 626 7 0 Profit (loss) for financial year 22,086 263 10,369 123 3 Liabilities Long-term liabilities 4,509 54 13,823 164 4 Short-term liabilities 1,713 20 3,034 36 1 Total equity and liabilities 354,462 4,229 358,992 4,251 100
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Working Papers of the Finnish Forest Research Institute 93 29 4 Conclusions Argilés and Slof (2001) as well as Elad (2004) provide a theoretical background and the comparison between the farm accountancy data network (FADN) and International Accounting Standards (IAS) 41 Agriculture of International Financial Accounting Standards (IFRS) guidance, also implementing IAS 41 for non-industrial private forestry (NIPF). They concluded that the contribution of IAS 41 is mainly conceptual and requires additional tools for implementation in practice, like some form of accounting plan. The accounting plan has been developed here, as well as product development and solutions implemented for the whole forestry sector. One may note that the traditional historical cost accounting (HCA) is still the most common measurement method for agricultural assets within the European Union (EU) (Argilés and Slof 2001). Moreover, empirical surveys show that most entities ignored value changes or treated them as capital adjustments (Herbohn and Herbohn 1999). Additionally, Elad (2007) remarks critically that ’overall, the IASC’s project – IAS 41 – on agriculture appears to have portrayed a dubious triumph of theory over pragmatism’. In spite of this criticism, Argilés and Slof (2001) see FADN as a relevant development context for IFRS reporting. Empirical studies suggest that foreign investors are more interested in the performance-related information based on the tax- and institutions-independent IAS earnings than in the idiosyncratic local accounting standards (LAS) earnings on which the dividend distribution is based, but a significant difference in responses of domestic investors to the two earnings could not be found (Kinnunen et al. 2000). Somehow surprisingly, an empirical test supports the view that particular items are value relevant to all investors irrespective of the domicile (Niskanen et al. 2000), which suggests supplying both IAS and LAS results. Standard-setters derive requirements for disclosures Figure ±.
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