The accounting treatment applicable to income from subsidies from which agricultural entities benefit

The economic activity of the agricultural field can be easily defined as a vast one, seeing as how it is in constant change and development. Even if the subsidies granted to accomplish these specific activities are just the metaphorical tip of the iceberg, they are the first thing that comes to mind when thinking about agriculture. The main purpose of this research article is to identify the key elements and main legislation which impose a certain manner of putting together the financial and accounting reports. To be able to fulfill the purpose of the article, the most used research method is the analysis of specialized literature and the according legal framework. Following the research, we can conclude that, from an accounting point of view, there are two main categories of subsidies that are granted to the entities undertaking activities in the agricultural field. The correct way of recording all of the operations regarding these subsidies are regulated by International Accounting Standards and orders of the Ministre of Public Finance.