The paper presents the features of agribusiness that affect the preparation of financial statements. Comparison standards of Ukrainian accounting system of agricultural and biological assets and IFRS.

Ukraine’s will to join the European Union requires a review of existing legislation, improving accounting and reporting required by IFRS.

The transition to IFRS farms is quite complex. Generally, larger farms - are companies that operate from the time of the USSR. A large number of assets on balance, amortized by P(S), will continue to be used in economic activity. IFRS requires independent valuation of fixed assets. This is an expensive procedure. Another feature of the agricultural business is its seasonality which affects the preparation of financial statements. Another important feature is the pricing of agricultural products. Prices are dependent on the market and can vary within quite a short period, what unpredictable impact on the year results.

The study aims to identify the main differences between the standards of Ukrainian system of accounting and international accounting standards for agricultural produce and biological assets.

The basis of P(S)30 “Biological assets” that regulates the accounting for agricultural activity in Ukraine, laid IAS 41 “Agriculture”. None of Ukrainian standards has received much criticism from theorists and practitioners as P(S)30. Methods of recognition, measurement and disclosure of agricultural activity in domestic and international standards, has both similarities and differences.

There are following main differences between the positions P(S) and IFRS regarding to biological assets and agricultural produce:

1) Exclusion from the scope of the appropriate standard: the land and intangible assets. In accordance with paragraph 2 of IFRS 41 “Agriculture” this standard does not apply to: land that is relevant to agriculture and intangible assets related to agricultural activity. According to P(S)30 “Biological assets” are no exception.

2) Appointment of agricultural products. In accordance with IFRS 41 is not defined purpose, and according to claim 4 P(S)30 - s/g products intended for sale, processing and domestic consumption.

3) Quantitative and qualitative changes in biotransformation. Paragraph 5 of IFRS 41 involves the following processes: growth, degeneration, production and reproduction, and P(S)30 - does not specify.

4) Categories: long-term biological assets, additional biological assets, current biological assets. IFRS 41 – undefined, and paragraph 4 P(S)30 defines them as separate concepts.

5) Determining the cost of sale. Paragraph 5 of IFRS prohibits the inclusion of financial costs and income taxes, and paragraph 4 P(S)30 provides for the inclusion in the cost of commissions to sellers and indirect taxes paid for sales.

6) accounting object. According to IFRS 41 - clearly not standardized. Item 15 of IFRS 41 only mentioned the usefulness of grouping biological assets or agricultural produce for evaluation purposes. According to paragraph 6 P(S)30 the object of accounting is a separate type of biological assets or group.

7) Determination of cost. Pursuant to clause 12 of IFRS 41 - at fair value less costs to sell, and according to paragraph 7 P(S)30 is formed by initial value in P(S)7 or P(S)9.

8) Presence of control as condition of confession of biological asset or s/g products. Prerequisite recognition under paragraph 10 of IFRS 41 in addition a separate explanation of control by way of example given in paragraph 11 of IFRS 41. P(S)30 - undefined.

9) The classification of income and expenses on initial recognition of biological assets and agricultural products, in particular according to p.26, 28 IFRS 41 - included in income (loss) of the period, and according to Item paragraph 18, 21 P(S)30 are recognized as other operating income (expenses).

10) In the scope of IFRS 41 (paragraph 1) accounting is agricultural subsidy, accounting rules for which are described in section 34-38 IFRS 41. On p.23 P(S)30 is given a reference to the provisions of P(S)15 on earmarked funding.

11) Opening of information: A group of biological assets. In the 43-45 IFRS 41 contains a list of groups that are advisory in nature, and in paragraph 25 P(S)30 is a list of such groups.

12) Opening of information: A strategy for managing financial risks associated with business activities. According to IFRS 41 paragraph 49 such information is necessary, and P(S) - disclosure of such information is not provided.

Therefore, based on the foregoing, we conclude that the transition of agricultural enterprises of Ukraine IFRS should be gradual and balanced, taking into account national peculiarities and needs of the entity rather than mindless copying of foreign developments.

Key words: agricultural products, biological assets, IFRS.