Faithful Representation, Productivity, and Profitability of SRA Accredited Block Farms in Negros Island

Abstract

The block farm program of the Sugar Regulatory Administration (SRA) has 59 enrollees from 2016 and 2017 in Negros Island. The block farms’ degree of compliance to faithful representation as qualitative characteristics of financial information were determined in this study. Faithful representation was measured through a compliance index (TCI) with a summation of three significant indicators of completeness, neutrality, and free from error. Results indicated a Total Compliance Index (TCI) of 0.26, interpreted as low compliance to faithful representation. The results revealed a significant relationship between production cost and productivity, revenue and cane yield, and revenue from sugar and productivity. Compliance with faithful representation and profit also showed a significant relationship, while compliance and productivity showed no significant relationship. Farms should adopt appropriate and generally acceptable accounting practices to enhance the quality of financial information. A practical and uniform bookkeeping system with proper training and support should be available. There is a need to develop practical courses on agricultural technology, farm management, farm accounting, and labor management.