Statements of Position



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This proposed audit and accounting guide primarily codifies existing practice in (1) auditing the financial statements of agricultural producers and agricultural cooperatives and (2) accounting by those types of entities. AICPA Statement of Position (SOP) 85-3, Accounting by Agricultural Producers and Agricultural Cooperatives, is included as an appendix to this proposed guide; its recommendations on accounting for agricultural producers and agricultural cooperatives are an integral part of this proposed guide. SOP 85-3 and the accounting provisions of this guide do not apply to personal financial statements of agricultural producers or statements prepared on a comprehensive basis of accounting other than generally accepted accounting principles. They also do not apply to the following: growers of timber; growers of pineapple and sugarcane in tropical regions; raisers of animals for competitive sports; or merchants or noncooperative processors of agricultural products that purchase commodities from growers, contract harvesters, or others serving agricultural producers. Significant areas discussed in this guide include: 1. Cost accounting and cost allocations by agricultural producers. 2. Normal versus abnormal costs of agricultural producers. 3. Accounting for income taxes by agricultural producers and agricultural cooperatives. 4. Accounting for losses by agricultural cooperatives. 5. Departmental and functional accounting by agricultural cooperatives. 6. Auditing procedures applicable to producers' and cooperatives' investments in agricultural cooperatives. In addition, the proposed guide includes illustrative financial statements of an agricultural producer and of an agricultural cooperative.

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Relational Format



Agriculture -- Auditing; Agriculture -- Accounting; Agriculture, cooperative -- Accounting; Agriculture, cooperative -- Auditing


Accounting | Taxation


Originally published by: American Institute of Certified Public Accountants; Copyright and permission to reprint held by: American Institute of Certified Public Accountants.

Proposed audit and accounting guide : audits of agricultural producers and agricultural cooperatives ;Audits of agricultural producers and agricultural cooperatives; Exposure draft (American Institute of Certified Public Accountants), 1986, Jan. 17



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