Issues of management accounting implementation in the agrarian sector of the Kyrgyz Republic

The relevance of this research is driven by the necessity to transition the agricultural sector of the Kyrgyz Republic from extensive farming practices to a modern management model based on accurate cost data. Establishing a reliable information base is a prerequisite for the effective development of the national agribusiness sector, positioning the modernization of accounting systems as a priority for the industry's economic growth. The study aimed to identify institutional, methodological, and human resource barriers hindering the development of management accounting in the country’s agriculture and to substantiate practical mechanisms for overcoming them. The methodological framework was based on a comprehensive analysis of agricultural entities in the Chüy, Issyk-Kul, and Osh regions, employing systemic and comparative analysis methods. The research findings demonstrated that the existing obstacles are multifaceted. It was established that the widespread use of the “single-pool” (lump-sum) accounting method deprives management of necessary product-specific analytics and leads to significant distortions in profitability indicators. Particular attention was given to the gap between the requirements of IFRS (IAS) 41 and operational reality: due to the lack of active regional markets, measuring biological assets at fair value remains practically unfeasible. The study proved that the forced implementation of international standards amidst the current shortage of qualified personnel and specialised software results in a formalistic approach to accounting that fails to reflect actual financial flows. The paper proposed a phased adaptation algorithm for management accounting systems, which includes the development of industry-specific methodological guidelines and the creation of standard frameworks for peasant (private) farms. The practical significance of the research lies in the potential application of “direct costing” and “standard costing” tools to optimise accounting policies within agribusiness enterprises and to modernise educational curricula in agricultural universities