Concept and classification of materials in agricultural organizations from the position of accounting and FАS (Federal Accounting Standard) 5/2019 "Reserves"

Accounting in agricultural organizations, as in any functioning economic entity, must reflect financial and economic indicators that correctly and reliably reflect the entire range of processes occurring in the organization. The value of the economic category «materials» for agricultural organizations is relatively high, since the main activities of these economic entities are carried out with the help of materials, their share in the cost of production sometimes reaches more than 70%. The correct organization of accounting for materials, control over their rational use are important both for the agricultural organizations themselves and for the country’s economy as a whole - this is directly facilitated by the correct classification of materials in terms of their reflection in the accounting of these business entities. With the entry into force in 2021 of the federal accounting standard 5/2019 «Reserves» (FAS 5/2019 «Reserves»), it is required to clarify the category «materials» for agricultural organizations, as well as the classification of materials. In the article, the author analyzed various paths of the category «materials» given by various scientists-economists and in FAS 5/2019 «Reserves», clarified the category «materials» and the classification of materials from the point of view of accounting for agricultural organizations, which will contribute to the correct reflection of materials on accounting accounts.