Improving the Quality of Reporting Information in the Annual Financial Statements of Farms: A Case Study of Poland and Spain
Purpose: The article aims to indicate significant areas of disclosure of non-financial information in the annual financial statement, in the aspect of the applicable economic practice and legal regulations. Approach/Methodology/Design: To achieve the article's goal, a survey was carried out in Wielkopolskie voivodships (Poland) and Galicia (Spain) from January 2018 to January 2020. The survey consisted of the following parts: part I – general information (10 questions), part II - identification of areas of disclosure of information on the agricultural activities of companies engaged in agricultural activities on the example of animal production (15 questions). As a result of the survey, the following number of responses was obtained: 100 questionnaires from Wielkopolska voivodeship (Poland) and 100 questionnaires from Galicia (Spain). Findings: As a result of the research, it was found that the reporting does not fully take into account the agricultural activity. The presentation of the results of this activity requires detailed clarification. The research results related to the scope of disclosure of non-financial information in the financial statements of a farm and potential information that should be presented in an integrated financial report of a farm are presented. Practical Implications: The article identifies essential areas of disclosure of information in the financial statements on agricultural activities of companies engaged in agricultural activities on the example of livestock production. Originality/Value: The survey results and theoretical considerations in the article complement the existing research in accounting, including agricultural accounting. Previously, such studies were not carried out.