Accounting for complex entities: implications for ARMS

Abstract

Purpose

The purpose of this research is to examine the effect of accounting for complex organizational forms on data collection with the Agricultural Resource Management Survey (ARMS).

Design/methodology/approach

This research reviews the literature from accounting theory along with the goals of data collection for policy analysis to draw conclusions about the applicability of accounting pronouncements.

Findings

Historically, the financial data collected in ARMS were based on financial accounting standards which were adequate for most purposes. However, this study develops the fact that many of these financial accounting standards were created to provide information for equity market transactions. The complexities of accounting for consolidations will provide valuable information, but implementing these standards will require accounting sophistication that is not prevalent in agriculture.

Originality/value

By drawing accounting theory together with the targeted use of data, this study offers guidelines to improve the data quality for a growing complex US agriculture.

Citation

Moss, C.B., Klinefelter, D.A. and Gunderson, M.A. (2012), "Accounting for complex entities: implications for ARMS", Agricultural Finance Review, Vol. 72 No. 2, pp. 201-209. https://doi.org/10.1108/00021461211250438