Accounting Practices for Agri-Commodity Derivatives between India and South Africa

Developing the comprehensive accounting for the derivatives has become a challenge for all the accounting bodies around the world. In India government has taken several initiatives to bring Agri- Commodity derivatives trading into main stream, so that it can solve the problems such as price fluctuation, price manipulation and ineffective price discovery which are the major treats to the Indian economy that to the farmers. Hence in this study Indian accounting standards are compared with international Financial Reporting Standards for the derivatives accounting. For this sample of three companies from each country are selected with basic criteria has the companies must use. Agri-Commodity derivatives in their risk management parties. Independent samples t-test has been used to analysis the collected date. The results of the study reveal low level of derivatives reporting among these countries.