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Table 3. Example of an adjusted balance sheet applicable for a farm forestry enter-
prise (see Teránne 1993, Committee forcorporate analysis 1995, Penttinen and
Hakkarainen 1998).
1 ASSETS
10-12 Fixed assets and other
capitalised expenditure
10 Intangible assets
1000 intangible assets
11 Tangible assets
1100 timber-growing land and
water areas
1110 buildings and construction
1120 plant and equipment
1130 silvicultural improvements
1140 advances paid
1190 other tangible assets
12 Securitics and long-term investments
1200 bonds and shares
1210 other long-term investments
13 Valuation items
1300 valuation items
14 Current assets
1400 timber reserves
1410 growing stock
1420 advances paid
1490 other current assets
15-16 Financial assets
16 Cash on hand and in bank
1000 cash on hand
1010 bank giro account
1620 bonds and shares
1690 other securities
2 LIABILITIES AND CAPITAL
20 Capital
2000 capital at the beginning of the
accounting period
2010 capital investment
2020 value of ones own work
2030 profit (loss) for the period
2040 capital retum
2050 private retum
2460 revaluation
21 Capital correction
2100 capital correction
22 Reserves
2300 afforestation reserve
2310 difference from deprecations
23 Long term liabilities
2300 interest subsidy loans
2310 other loans from banking
establishments
2390 other long-term debt
24 Short term liabilities
24(K) trade payables
2410 advances received from stumpage
sales
2420 advances received from sales at
delivery price
2430 advances received from other timber
sales
2440 other advances received
2450 accrued liabilities and prepaid income
2460 value added tax liabilities
2490 other short term liabilities
15 Receivable
1500 stumpage sale receivable
1510 sales at delivered price receivable
1520 other timber sales receivable
1530 other trade receivable
1540 loans receivable
1550 prepaid expenses and accmed
income
1560 value added tax receivable
1190 other receivables
and inputs of forestry activity are
excluded in theaccounts. Further-
more, often the information on
farm returns based on existing
FADN survey form does not per-
mit separation of non-agricultural
inputs (Brookes 1998).
In practise, a complete farm
forestry accounting system under
the FADN system is difficult to
establish. This is not least forthe
following two reasons. Firstly, the
nature of the activities involved
in the growth and management
of trees differs fundamentally to
that of agriculture. Secondly, the
determination of the financial
and economic values and quanti-
ties of various inputs and out-
puts, in addition to the assets is
not possible to do with the same
accuracy in forestry as in agricul-
ture. Nevertheless, the FADN pro-
vides the only existing cross-
national networkfor monitoring
the socio-economic situation of
farms in the European Union.
Therefore, it also provides a logi-
cal basis for developing the farm
forestry accounting systems in
the member countries in a har-
monised manner.
Establishing an accountancy
network is not an easy task with or
without being able to use the
FADN framework, and it is there-
fore important to adopt a princi-
ple of 'realistic optimism’ as a
starting point. Nevertheless, since
the demand for information of the
economic performance of forestry
at farm level is increasing, the
efforts and resources used for de-
veloping of farm forest accountan-
cy networks are justified so as to
satisfy the information require-
ments of various interest groups.
References
Brookes, B. (1998). Farm forestry
and the FADN. In: Hyttinen, P.
and Kallio, T. (eds.). Sampling
Schemes for Monitoring the
Socio-economics of Farm Forest-
ry. EFI Proceedings 28. 25-30 pp.
Communication from the Commis-
sion to the Council, the European
Parliament, the Economic and
Social Committee and the
Committee of Regions on a fo-
restry strategy forthe European
Union. Commission of the Euro-
pean Communities. COM (1998)
649.
Forestry Statistics 1992-96.
Eurostat, Luxembourg, 1998.
Hakkarainen, J. and Sekot, W. 2000.
Accounting of socio-economic
variables. ln: Niskanen, A. and
Sekot, W. (eds). Guidelines for
establishing farm forestry
accountancy networks. EFI
Research Report. Forthcoming.
Hyder, A, Lönnstedt, L. and
Penttinen, M. 1994. Outline of
accounting for non-industrial pri-
vate woodlots. Silva Fennica
28(2): 115-137.
Niskanen, A. 2000. Summary and
Conclusions. In: Niskanen, A. and
Sekot, W. (eds). Guidelines for
establishing farm forestry
accountancy networks. EFI
Research Report. Forthcoming.
Niskanen, A. and Hyttinen, P. 2000.
Accountancy networks to monitor
the economic performance of
farm forestry enterprises in
Europe. Paper presented in
IUFRO Research Group 3.08
Small-Scale Forestry Conference
lanuary 9-13, 2000, Cairns,
Australia
Niskanen, A. and Sekot, W. (eds).
2000. Guidelines forestablishing
farm forestry accountancy net-
works. EFI Research Report.
Forthcoming.
Sekot, W. 2000a. Creating the sam-
ple. In: Niskanen, A. and Sekot,
W. (eds). Guidelines for estab-
lishing farm forestry accountancy
networks. EFI Research Report.
Forthcoming.
Sekot, W. 2000b. Organisational
arrangements. In: Niskanen, A.
and Sekot, W. (eds). Guidelines
forestablishing farm forestry
accountancy networks. EFI
Research Report. Forthcoming.
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