ABSTRACT
The essential insight for farm management accounting is to separate consideration of each individual enterprise from the consideration of the overall business. While farm management accounting may assist the operation of the business and its decisions, financial accounts are also required to make tax returns and for lenders as well as providing a retrospective snapshot of the business itself. Detailed rules for this are laid down by Financial Reporting Standards which must be followed and are endorsed by the tax authorities. Tax law requires some adjustments to be made to accounts for the purposes of the tax return. Such items are work for the accountant, but it is useful for the valuer to understand the process and, in working with the accountant, to ensure that nothing is missed between them. The accountant may then also apply averaging for Income Tax.
