Comparison of accounting and valuation of agricultural primary production according to Czech legislation and International Financial Reporting Standards IFRS

The article compares the accounting and valuation of agricultural primary production under International Financial Reporting Standards (IFRS) and Czech legislation. IFRS uses fair value pricing, while Czech accounting relies on historical costs. This leads to discrepancies, particularly in land valuation—Czech accounting does not reflect actual market developments or timber growth in forest land. On the other hand, perennial and short-term crops, as well as livestock, are valued using internal calculations based on current market prices, ensuring a more accurate reflection of their value. For Czech accounting, perennial crops and animals classified as fixed assets are depreciated for both accounting and tax purposes. If a temporary decrease in value occurs, a write-down must be applied at the end of the accounting period. This ensures the financial statements present a true and fair view of the company's situation. Under IFRS, regular revaluation of these assets is not required due to high volatility in market prices, which are often beyond human control. Thus, while IFRS emphasizes market value, the Czech approach balances realism with caution, particularly for volatile agricultural assets.