The impact of accounting regulation basis to the mandatory biological assets reporting: evidence from the Serbian agricultural production companies

The aim of this paper is to analyze the quality of biological assets disclosure among the agricultural production companies which are implemented IAS 41 and IFRS for SMEs. The research is based on the sample of 200 observations of financial statements of agricultural companies during the period 2016 - 2020. The level of the quality of biological assets reporting is measured by the quality index. The impact of independent factors such as enterprise size, biological assets intensity, current ratio, profitability, leverage and accounting regulation on the quality of biological assets reporting is measured by using regression analysis. The results indicate that there is significant difference in the level of biological assets disclosures between the companies which are implemented IAS 41 and IFRS for SMEs. Furthermore, the findings indicate that the enterprise size, profitability and accounting regulation basis have significant positive impact on the level of disclosure information about biological assets. According to this, larger enterprises, enterprises with the higher level of profitability and enterprises which adopted IAS 41 have the higher quality of biological assets disclosure.