CASE STUDY OF THE ACCOUNTING POLICY FORMATION AT AGRICULTURAL HOLDINGS IN LITHUANIA

Dalia Jatkūnaitė, Lina Martirosianienė, Neringa Stončiuvienė

CASE STUDY OF THE ACCOUNTING POLICY FORMATION AT AGRICULTURAL HOLDINGS IN LITHUANIA

The article provides a brief overview of the normative and positive accounting in relation to profit increase/decrease. In order to meet the aim of this study – to define the peculiarities of the accounting policy formation at Lithuanian agricultural holdings- descriptive, logical analysis and synthesis, comparison, questioning, and graphical representation methods were employed. The relationship between accounting method application and profit increasing/decreasing accounting policy formation at agricultural holdings is analyzed. The study revealed that a holding with respect to accounting policy formed in relation to profit may choose different accounting methods according to different accounting objects. It follows from the empirical investigation carried out at Lithuanian Agricultural holdings that not all holdings acknowledge the role of the accounting policy and the relevance of its formation. The holdings that form the accounting policy do not look for the most favorable moment for the accounting policy formation. They refer to the normative theory. The empirical study of the tangible, inventory and biological assets, and liabilities with respect to accounting policy formation indicated that most of the Lithuanian agricultural holdings choose the profit increasing accounting policy.

Key words: normative theory, positive theory, accounting policy formation, profit, assets, liabilities, accounting methods.
JEL Classification System: M41, D02, D21.

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