Fair Value Accounting in the Agricultural Sector: The Analysis of Economic and Educational Factors

Abstract

Currently, the significance of fair value in financial reporting is gaining momentum and current debates are moving in the trend of full fair value reporting. Small and medium-sized entities are not let off in this instance. The move to new reporting standards results in numerous challenges for diverse interest groups such as auditors, preparers and regulators. The main objective of the study was to establish the fair value implementation challenges facing SMEs in the agricultural sector in Ghana. The population for this study is made up of accountants in the SMEs in the agricultural sector. Expert sampling method was used in the study. A sample size of 90 farms was adopted. A purposive sampling, which is non-probability sampling, was adopted in this study. The questionnaire was administered personally to each respondent in accordance with each objective of the study. The Statistical Package for the Social Sciences (SPSS) was used in this study for the interpretation and analysis of data. This study established that, in Ghana, commodity markets do not exist and that farmers do not have access to market information. The study also established that there is inadequate training and education for preparers of financial statements and academic education not focusing on agricultural accounting.