Accounting and Analysis of Biological Asset Transformation Results in Agricultural Companies of the Russian Federation

According to IAS 41 "Agriculture" an agricultural company should keep accounting of agricultural products represented by fair value net of sale costs unconditionally. Bio assets should be evaluated by fair value net of sale costs until they are transformed into agricultural products. This article is aimed to suggest a new procedure on analyzing financial results of an agricultural company with regard to bio assets. The suggested procedure can be implemented in the companies splitting accounting of costs into variable and fixed ones and in the companies practicing conventional cost accounting procedures. Integrated agricultural production company "Kolos" was the base for the following research. Recommended procedure of control and analysis of presented indexes evaluates the extent of influence of managerial decision about allocation and utilization of bio assets on return on production investments, output of agricultural products obtained from bio assets. The output is assessed by gross product evaluated by fair value net of sale costs, gross margin, gross profit, labor productivity in plant breeding, animal breeding and in general agricultural activity.