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A Review of Agricultural Accounting Education and Literature in Turkey
Ahmet GÖKGÖZ, PhD.
Program of Accounting and Tax Applications
YalovaUniversity – YalovaCommunity College
Yalova – Turkey
Abstract
Agriculture is one of the main sectors in Turkey. However, accounting practices regarding
theagriculturalsector has not attracted sufficient interest. Professional accountants are not
provided withany courses on agricultural accounting during the education they receive. In
addition, the number of academic studies regarding agricultural accounting is few. One of the
reasons agricultural accounting has not drawn enough interest is that agriculture has been
practiced by farmers who live in villages and by small family businesses, and due to the fact that
most of these are tax exempt, accounting practices in agriculture are not given enough
importance. The aim of this study is to review the agricultural accounting education and
literature by presenting information regarding agricultural accounting education and academic
studies regarding agricultural accounting.
Keywords: Agricultural accounting, Turkey, Agricultural Accounting Education.
Jel Classification: M40, M41, M49.
1. Introduction
The word agriculture is defined asthe act of sowing and planting, but the meaning of agriculture
is broader today. In the 41stAgricultural Activities Standard of the Turkish Accounting
Standards, agricultural activity was defined as the transformation of biological assets, which are
subject to selling or recycling into agricultural products or different biological assets, and the
management of harvesting operations, by an enterprise. In the 41stStandardof the TAS (Turkish
Accounting Standard), any living animal or plant is called a “biological asset”, and the product
of the harvest is called an “agricultural product”. The aforementioned standard deals with
agricultural activity to the point of harvest, but it does not consider the processing of agricultural
products as an agricultural activity. In compliance with the meaning of agriculture in the 41st
Standard of the TAS, agricultural activities are classified into four groups in the literature (Şahin,
1997:220):
i.
Plant Production,
ii.
Livestock Production,
iii.
Forestry Production,
iv.
Aquaculture Production.
The agriculture sector is of great importance for countries for several reasons, including
providing the food needs of humans, providing input for other sectors such as the industry and
service sectors, making contributions to the national income, taxes and trade of the countries, and
providing employment. It is also very important for Turkey, which has vast and fertile lands,
large forest areas, and vast artificial and natural water resources thatare suitable for aquaculture.
In Turkey, agricultural activities have been carried outby farmers living in villages and by small
family businesses for a long time. However, with the recent state subsidies and advanced
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agricultural technologies, capital intensive companies have also begun to invest in the
agricultural sector, despite the fact that the number of these companies is not at the desired level.
In Turkey, accounting practices have gained importance in recent years with the increase in the
number of capital intensive companies, even though the number is low. The reason for this is that
the data obtained from accounting departments are important in the administrative decisions
made by the aforementioned businesses, which are run professionally. However, due to the fact
that agricultural activities have been carried outby farmers living in villages, and by small family
businesses for a long time, and most of these businesses place importance on accounting because
they are tax exempt, have hindered the advance of agricultural accounting practices. Therefore,
this has negatively affected agricultural accounting education and studies.
Parallel to International Accounting Standards, there has been an increase in the studies on
accounting for agricultural activities with the entry into force of the TAS 41 st Agricultural
Activities Standardon Februaray 24, 2006, to be used in accounting periods after December 31,
2005. However, there has not been an advance in agricultural accounting education. The aim of
this study is to present a review regarding the studies on agricultural accounting education and
agricultural accounting. Before providinginformation about the aim of the study, it is useful to
presentinformation about agricultural activities in Turkey.
2. Agricultural Activities in Turkey
The portionof agriculture in national income was 50% in 1950, while it was 10% in
2007.Yetagriculture is an important sector of the Turkish economy (Karakaya 2009:294). The
decrease in in the agricultural portion of national income as an expected result of the structural
change in the Turkish economy towards industrialization should not be considered as a recession
in agriculture. If it is considered that agriculturalbased production is important in the industrial
sector, it will be understood that agriculture is an important aspect of the Turkish economy
(Çetin, 2010: 35). It is useful to classify agricultural activities into four categories, which are
plant production, livestock production, forestry production, and aquaculture production.
2.1. Plant Production in Turkey
In Turkey, plant production constitutes 65% of agricultural production, which is the largest part.
However, due to the fact that it is mostly dependent on climate and natural conditions, it is not
possible to benefit from the production potential at the desired level and production is low (DPT,
2000:135).
Plant production, which is the largest part of agricultural production, is classified into arable crop
production and horticultural production. According to data from the State Planning Organization
(DPT), wheat, sugar beets, barley, potatoes, cotton, and onions are the highest produced arable
crops in Turkey. Tomato, watermelon-melon, grapes, figs, citrus fruits, apples, olives, and tea are
the highest produced fruit crops (Gökgöz, 2012a:10-12).
2.2. Livestock Production in Turkey
Livestock production constitutes the second highest portion of agricultural production in Turkey.
However, the yield per head of livestock is lower than in most countries, which are developed in
livestock production, despite the fact that the number of livestock is higher (DPT, 2000:137).
According to data from the Turkish Statistical Institute (TÜİK), the highest produced livestock
are chicken, sheep, cattle, goats, turkeys, and geese.
2.3. Forestry Production in Turkey
Forests, which make significant contributions to the socioeconomic development of Turkey,have
been harmed due to unplanned use, overuse, and erosion (DPT, 2000:139). According to data
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from TÜİK, 44% (20,703) of 46,731 hectares of agricultural and forest areas were forest areas in
2003. This rate increased to approximately 46.5% (21,189 hectares).
2.4. Aquaculture production in Turkey
Aquaculture production has not reached the desired potential in Turkey, which is surrounded by
three seas, has a coast line of 8,333 km, 906,118 hectares of natural and 344,234 hectares of
artificial lake areas available, and 178,000 km of streams. However, it is thought that the annual
production can exceed 1,000,000 tons (Tekelioğlu et al., 2007:692). However, according to data
from TÜİK, the amount of production by the year 2009 is 623,191 tons. Most of the aquaculture
production in Turkey comes from fishing. However, there has been a 100% increase in the
aquaculture production from breeding when the data from 2003 and 2009 are compared,
according to TÜİK. The amount of production was 79,948 tons in 2003, while it increased to
158,728 tons in 2009.
3. Agricultural Accounting Education in Turkey
Accounting is taught in the relevant departments of the faculties of economics and administrative
sciences, social and human sciences, human and society sciences, management and economy,
and also in the accounting and tax application programs of trade vocational high schools. There
are also accounting programs at the graduate level.
In Turkey, the profession of accounting gained legal status with the Law No. 3568 on „„The
Public Practice of Accounting, Independent Accountant and Private Advisor, and Certified
Councillorship‟‟ dated June 13,1989. Some chapters of the aforementioned law were amended
with the Law No. 5786 published in the Official Gazette No. 26948 dated July 26, 2008.
Accordingly, the profession of accounting is performed with the titles of
“CertifiedPublicAccountant” and “Sworn-in Certified Public Accountant” (Karabınar, 2009: 1011).
It is a prerequisite to graduate from an undergraduate program of the relevant universities or
complete the graduate program, in order to become an Independent Accountant and Private
Advisor. Those who succeed in the professional exams after three years of additional practical
training become entitled to the title Certified Public Accountant (SMMM). It is mandatory to
work a minimum of 10 years and succeed in the Sworn-in Certified Public Accountant (YMM)
exam (Law No. 3568, İSMMMO: 2012).
When the literature regarding accounting is analyzed, agricultural accounting is considered a
field of specialization and constitutes the sub-branch of general (financial) accounting (Gökgöz,
2012b:27). No course regarding agricultural accounting is taught to those who perform the
profession of accounting (at SMMM and YMM level) at the high school, associate,
undergraduate or graduate levels. However, a course on agricultural accounting is taught in the
agricultural economy departments of the faculties of agriculture and at the agricultural
management departments of vocational schools. Considering this, the lack of a course regarding
agricultural accounting in the curriculum of people who perform the accounting profession is
considered as an insufficiency in a country where agriculture is so important and the number of
agricultural enterprises is increasing.
4. Agricultural Accounting Literature in Turkey
Agricultural accounting is a type of accounting, which requires specialization such as bank
accounting, insurance accounting, structural accounting, and hotel accounting. However, it is the
type that is granted the least amount of attention by accounting researchers. Despite the fact that
a few books on agricultural accounting were written long ago, the number of Master‟s and PhD
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theses and articles have increased with the entry into forceof the TAS Agricultural Standards. It
will be useful to give information about Turkish books about agricultural accounting.
Agricultural Accounting - Muhasebe-iZiraiye (Aram Margosyan, 1885): The book
“Muhasebe-iZiraiye” which was written in 1885 by Aram Margosyan is considered the oldest
Turkish book written about the subject. The book is 80 pages and consists of four chapters. The
chapters are named general informations (Ma‟lûmat-ıUmûmiye), general procedures (MuameleiUmûmiye), agricultural accounting (Muhasebe-iZiraiye) and biological product (NeticeiTabiiye). A double-sided registry system is used in the book and three types of books were
suggested for use in accounting for agricultural activities. These are inventory, movable
properties and goods, and cash books. Also, another interesting part in the book is the calculation
of profit or loss for the financial year by comparing the opening and closing capitals (Güvemli,
2000:664-688).
Agricultural Accounting Principles and Farm Accounting – AmeliUsûl-iMuhasebeiZiraiyeveÇiftlikMuhasebesi (İbrahim Fazıl – 1922): The first book written about agricultural
accounting during the republican period is “AmeliUsûl-iMuhasebe-iZiraiyeveÇiftlikMuhasebesi
(Agricultural Accounting Principles and Farm Accounting)‟‟ which is published between 19211922. The book was written by İbrahim Fazıl, one of the teachers atthe HalkalıZiraatMektebiÂlisi (Halkalı Higher School of Agriculture), Agricultural Economy and Accounting. The book,
which was written for the purpose of providing information about the benefits of keeping
accounts, was demonstrated as the Land Trade Law that was in force during that time, and stated
that the farms in Germany were obliged to keep accounts. The author mentioned the advantage
of keeping double-sided records and emphasized that the use of this system by industrial and
commercial businesses was mandatory. However, he recommended that the businesses that make
agricultural production use his method that he developed using a basic accounting system. The
book is narrated throughout, depicting the transactions to be recorded in general. The books to be
kept for agricultural activities were classified as inventory and plan ledgers, cash books, and
comparison chart (Güvemli, 2001:250).
Accountings
and
Organization
of
Agricultural
Enterprises
–
ZiraiİşletmelerMuhasebesiveTeşkilatı (BahaEsadKarova, 1938): The book was written by
BahaEsadKarova, who was the deputy manager of State Agricultural Enterprises at the time. In
the book, which was published in 1938, there were account plan practices for State Agricultural
Enterprises, financial accounting, and most importantly, topics regarding accounting for
agricultural activities. In addition, there were examples regarding documents at the end of the
book (Karakaya, 2009:302).
Agricultural Cost Accounting – ZiraiMaliyetMuhasebesi (SedatÜnalan and SahilÖzel,
1966): The book was written by SedatÜnalan and SalihÖzel, two lecturers at Gazi University, in
1966. The main topic of the book is the financial accounting system in agricultural enterprises
and the application of this system. In addition, the principles of direct production costs were
discussed in the book, which includes the application of process cost systems. Despite the fact
that the book was prepared as a textbook, it is based on practice and it includes suggestions
(Karakaya, 2009:302).
Specialized Accounting – İhtisasMuhasebeleri (Mehmet Ali Aktuğlu, 1984): The book,
which was written in 1984 by Mehmet Ali Aktuğlu, lecturer at DokuzEylül University, is
intended for the accounting practices of agricultural enterprises, banks, and insurance enterprises.
Agricultural economy, accounting in agricultural enterprises, practices of financial accounting
and cost accounting, and tax laws on farming were includedin the chapter about agricultural
enterprises and accounting.
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Agricultural Accounting – TarımMuhasebesi (Ali Aras, 1988): The book was written in 1988
by Ali Aras, lecturer at Ege University, and included information about records in agriculture as
a textbook. The importance, definition, goals and development of agricultural accounting were
mentioned in the book, and farm records, farm inventory, assessment, amortization, analysis of
records, budgeting, and tax applications were explained.
Tax
and
Accounting
in
Agricultural
Enterprises
–
TarımİşletmelerindeVergilerveMuhasebe (HasanDoğan, 2004): General information about
agriculture and agricultural accounting, social legislation, value added tax and income tax in
agriculture and taxation by withholding in agriculture were included.
Accounting for Agricultural Activity – TarımsalFaaliyetlerinMuhasebeleştirilmesi
(FeriştahSönmez, 2006): The agricultural sector, agricultural policies in the EU, assessment of
assets in agricultural enterprises, amortization, analysis of financial statements, accounts to be
used in agricultural enterprises, and accounting standards in agriculture were explained in the
book, which was written by FeriştahSönmez, lecturer at Adnan Menderes University, in 2006.
Agricultural Accounting – TarımMuhasebesi (BahattinÇetin andTolga Tipi, 2007):
Inventory, assessment and amortization in agricultural enterprises, agricultural production
records, analysis of accounting records, and the taxation of agricultural gains were included in
the book written by lecturers atUludağ University.
PhD theses regarding agricultural accounting that were written using the database of the National
Thesis Center, which operates under the Higher Education Institute, are given in Table 1, and
Master‟s theses are given in Table 2.
Table 1: PhDThesesprepared in TurkeyAboutAgricultural Accounting
Title of theThesis
Preparedby Year University
B. Erol
Marmara
Accounting Organization in Agriculture Enterprises
1989
Uçman
University
Accounting System in Agricultural Enterprises and
Gazi
Case Study Application withintheFramework ofthe Zeki Yanık 1996
University
General Communique on Accounting System
Accounting Applications SamplesRelatedtoUnits of
Hüseyin
İstanbul
The
Central
Union
of
1999
Çiçek
University
TurkishAgriculturalCreditCooperatives
Azzem
Gazi
Costsand Accounting in theLivestock Enterprises
2001
Özkan
University
Calculation of Costs at OrchardBusinesses in the
Gazi
Ali Deran
2005
Framework of Accounting Theoryand Applications
University
Product Costing in GreenhousesCorporations as to Ömer Faruk
Gazi
2006
International Accounting Standards
Demirkol
University
An Assesment of the Application of Uniform
Neslihan
Ankara
Accounting System on theFarms in Turkeywith
2009
Köse
University
Special AttentiontoTurkish Accounting Standards
Examination
of
Accounting
forAgriculturalActivitiesWithinthe Framework of
Hacı Arif
Selçuk
2011
Turkish Accounting Standard 41: A Case
Tunçez
University
StudyImplementation in a Agricultural Enterprise
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Title of theThesis
Preparedby Year University
Calculation of Product Costs‟ and Accounting Under
Ahmet
Sakarya
2012
TAS 41 of FishBreeding Enterprises
Gökgöz
University
Resource:http://tez2.yok.gov.tr/, 21.10.2012.
Table 2: Master Thesesprepared in TurkeyAboutAgricultural Accounting
Title of theThesis
Preparedby Year University
AgriculturalCost Accounting and Evaluation of
Gazi
Azmi Kara 1989
Application in A SampleAgricultural Business
University
Establishing of EstimatedCost Accounting System in
Adnan
Anadolu
TurkishAgriculturalBusinessesandItsUsage As a
1990
Sevim
University
Management ControllingTool
Ali Rıza
Anadolu
Accounting Organization in CattleBusinesses
1995
Kaymaz
University
Cost Accounting Practices in Agricultural Enterprises
Halil
Trakya
in Tekirdağ Province: Model Proposaland an
1995
Karaca
University
Application
TheInvestigation of RecordBooks of theMembers of
Celal
Trakya
BreedingCattleAssociationsFarmers
in
2001
Demirkol
University
ThraceRegionanditsEffect on Business Performance
A
Research
on
Keeping
Accounting
Mustafa
Ege
RecordsRelatedto Analysis and Planning of
Özhan
2002
University
Agricultural Enterprises on Computer
Kalaç
The Evaluation of Farm RegisterSystem in Turkey in
Ankara
theframe of EU Farm Accountancy Data Network Cihan Nazlı 2006
University
(FADN) System
Ondokuz
A Research on Costs of Farm Productionsand
Bülent
2006
Mayıs
Accounting in Çarşamba Plain, Samsun
Çelebi
University
Classification of FarmsGrowingMaizebased on
EuropeanUnion Farm of Agricultural Data Network Ahmet Sami
Selçuk
2008
SystemandComparing of Farm Productivity: A Case
Erol
University
Study Çumra Region in Konya Province
Süleyman
BiologicalAssets Evaluation AccordingtoTurkish
Tülay Top 2009
Demirel
Accounting Standards; An Application on Cattle
University
SpecificOrdersCostingand
A
Business
Barış
İstanbul
GeneratingAgriculturalIrrigation Machine
Case
2010
Muratoğlu
University
Study
Karadeniz
Ömer
Accordingto TMS 41 BiologicalAssets Accounting
2010
Technical
Yazan
University
TheClassificationand
Evaluation
of
Apple
Meltem
Selçuk
2010
FarmsAccordingto FADN in Egirdir, Isparta
Emre
University
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Title of theThesis
Preparedby Year
Accounting Approach in Agricultural Enterprise
Ahmet
Through on Turkish Accounting Standards: An
Erkan
2010
Approach in Fruit Enterprise
Cihangir
Resource:http://tez2.yok.gov.tr/, 21.10.2012.
VOL 4, NO 7
University
Hitit
University
There is an increase in the number of articles regarding agricultural accounting in Turkey after
the publication of the 41stStandard of the TAS in 2006. However, a significant part of the studies
are related with the application of 41stStandard of theTAS.
5. Conclusion
Agriculture is one of the main sectors in Turkey due to its contributions to the national income,
the employment it provides, and the importance of agricultural production among other sectors.
Accounting practices in agriculture have not developed at the desired level due to the fact that
agriculture has been practiced by farmers who live in villages and by small family businesses,
and most of these are tax exempt. Therefore, academic studies regarding agricultural accounting
education and agricultural accounting have not been given enough importance.
Recently, with the publication of the 41stAgricultural Activities Standard of the TAS, accounting
applications have gained importance with the beginning of equity companies‟ investment in the
agricultural sector, and to direct accounting applications of agricultural enterprises. Parallel to
the aforementioned advances, it is recently observed that the academic studies (books, theses,
articles) within the axis of the 41st Standard of the TAS have increased. However, no significant
advance was observed regarding agricultural accounting education.
Regarding agricultural accounting education in Turkey, a lecture named agricultural accounting
is taught in the agriculture economy departments of the faculties of agriculture and at the
agricultural management department of vocational schools. However, during the period of
education of those who are involved in the accounting profession (SMMM, YMM), there is no
course regarding agricultural accounting in the curriculum. This situation causes insufficiencies
in the education of people responsible for accounting in agricultural enterprises. In this context, it
is necessary to teach agricultural accounting in the vocational accounting schools and relevant
faculties, especially in areas where agricultural activities are greater, and the number of
agricultural enterprises is increasing.
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