Scientific Journal of KubSAU

The instruments of increasing competitive stability and decreasing financial risk of the company in the conditions of an economic crisis are considered in this article. The process of production in agriculture is closely related to the natural biological processes. Animals and plants function as means of production, and they are living organisms, developing on the biological laws that determine the dependence of the production process in the agricultural sector on natural factors. Besides, various soil climatic conditions have impact on results of economic activity of agricultural producers. Therefore, companies that work in rather worse natural zones are less competitive. The price factor doesn't provide financial well-being and doesn't reduce risk of bankrupt to such organizations. The economic situation in the country, emergence of new financial instruments and some other factors has essential impact on results of economic activity of an agrarian enterprise. Thus, the activity of the company in all its forms is connected with numerous risks, thus, financial risks play an essential role, generally, "a portfolio of risks". In this regard, an actual task in practice of an agrarian enterprise is the assessment of level of financial risk on the basis of accounting reports: the balance sheet records the financial situations of the organization at reporting date, and the report profits and losses results of financial activity. The system of internal control in various directions is necessary for risk management: acquisition of raw materials and materials, product sales, logistics, personals, finance and capital investments. A possibility of an agrarian company to estimate, to control and to operate its own risks is important competitive advantage, allowing to create financial and steady structure of the organization

The article presents aspects of the efficiency of the international financial reporting standards (IFRS) in the accounting practice of agricultural enterprises by basic organizational components, defines stages of the application of certain IFRS elements in the preparation of reporting of the agricultural sector enterprises. First of all, agricultural enterprises will face problems of the transition to IFRS. This is associated with peculiarities of the agricultural production, which are determined by the natural and social factors and affect the organization of accounting: agricultural production is seasonal, this is why the production cycle doesn’t coincide with the calendar year; the land is the basic means of production, animals and plants act as a specific means of production; timescales of plant ripening and animal breeding determine the obtainment of the end product. Analysis of the difficulties of the agricultural organizations’ transition to IFRS showed different views in the scientific and professional community regarding the valuation of assets and liabilities and biological assets accounting. Choice of experts responsible for the preparation of reporting according to IFRS is an important issue that requires additional expenses for hiring highly qualified specialists or the creation of a special department, which is fully agreeable to international standards. Success of the reporting preparation according to IFRS requires the process optimization with the usage of modern information technologies. Introduction of IFRS to the accounting practices of agricultural enterprises implies changes of the national regulatory framework of accounting, reporting and taxation