Surviving on Agricultural Sector : Comparison of Income Statement between Traditional Farmers and Agricultural Companies
Martino A. Adipraja

University of Airlangga

Abstract

Indonesia has a large agricultural land, but agricultural products in Indonesia are not enough to meet the needs of the people of Indonesia. A new breakthrough is needed for Indonesian agriculture to meet market demand. In this paper we will compare two different profit and loss statements in the drafting rules. The focus of this paper is on the ratio of margins gained in a given period, the risks involved, and the cost reduction by two different but interdependent entities in the continuity of their business. The existence of allegations of injustice in the phenomenon has become one of the authors interest to examine this, where one entity faces financial distress at harvest failure as if there is no "pity" from other entities.

Keywords: agricultural accounting, injustice, financial distress

Topic: Strategic Management, Entrepreneurship and Contemporary Issues