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Managerial Accounting Guidelines • Build from previous work initiated by: – National Pork Producers Council – National Corn Growers Association – United Soybean Board – National Cattlemen’s Beef Association
Require accrual, cost-based accounting Responsibility center approach Integration of production and financial Accumulated core transactional information with economic concepts and analysis • Guided by consistency with: – – – –
GAAP Commercial industry practice Multiple commodity applicability Standardization capabilities
Source: Management Accounting Guidelines for Agricultural Producers
Managerial Accounting Guidelines
MA Income Statement
Source: Management Accounting Guidelines for Agricultural Producers
Managerial Accounting Guidelines
Traditional Income Statement
Source: Management Accounting Guidelines for Agricultural Producers
Managerial Accounting Guidelines
MA Income Statement
Source: Management Accounting Guidelines for Agricultural Producers
Managerial Accounting Guidelines
Audience • • • • • •
Ag industry has output of $200 Billion 389 farms accounted for 10% 3,201 farms accounted for next 15% 30,495 farms accounted for next 25% 2,000,000 farms accounted for the rest Core audience for MA is the 2nd tier plus those from the 3rd tier who still want to be there 10 years from now – Source Steve Hofing
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