| dc.description.abstract | IAS 41 introduces a fair value model to agricultural accounting. Its objective is to establish standards of accounting for agricultural activities, management of the biological transformation of biological assets and agricultural produce.
The adaptation to new accounting standards has affected many companies. Prior research by UNCTAD noted significant high levels of non-compliance with IFRS. The greatest challenge by the agricultural companies is that IAS 41 regulates the valuation methods of their biological assets. Given that this was a transition from the historical cost accounting, this may have contributed to the low levels of non-compliance at the time UNCTAD conducted their research.
The objective of this study was to establish the extent of compliance with IAS 41 by listed agricultural companies on the Nairobi Securities Exchange. The researcher applied survey research design. Primary data was collected from the companies surveyed and used for analysis through descriptive statistics.
The research findings established levels of non compliance of IAS 41 ranging between 17% and 39% by listed agricultural companies on the Nairobi Security Exchange. The specific areas of non-compliance were in the financial disclosures with non compliance level of 20%, non financial disclosures with non compliance level of about 60% and other disclosures with a non compliance level of 100%. In conclusion ICPAK, NSE and CMA being the institutions charged with the responsibility of implementing and overseeing compliance with IFRSs should instigate stringent policies for noncompliance.
The researcher recommends further academic research on other limited agricultural companies not listed on the Nairobi Securities Exchange. Research findings of these companies would present more comprehensive findings on the extent of compliance with IAS 41 by agricultural companies in Kenya. | en |
