MINUTES OF EVIDENCE. 



49 



12 August, 1919.] 



MR. H. Gh HOWELL, F.C.A. 



[Coiitiiiutd. 



accounts referred to will be framed on uniform lines, 

 so that reliable comparisons may be made. 



Xote. By financial accounts is meant the usual 

 accounts of income and expenditure which issue 

 in a yearly profit and loss account and balance 

 sheet, showing the total profit or loss on the work- 

 ing of the farm but not showing the result of 

 each branch of the farm. 



By cost accounts is meant the further detailed 

 records, in addition to tho financial accounts, 

 which are necessary to ascertain the costs and 

 result of each separate crop, class of live stock, 

 etc. 



1103. An endeavour will be made to assist in stan- 

 dardizing the teaching of farm book keeping and 

 accounts throughout the Kingdom. 



1104. In addition to encouraging the keeping of 

 the accounts mentioned above, the Committee will 

 undertake surveys and investigations into costs and 

 financial results generally. 



HOo. It will also endeavour to promote the forma- 

 tion of local organisations, on the line.* of the book- 

 keeping bureaux in existence on the Continent and 

 elsewhere, to furnish local assistence to farmers in 

 the closing and balancing of their yearly accounts, 

 the preparation of annual inventories, etc. 



1106. In consequence of cost accounts as distinct 

 from financial account^ requiring more detailed 

 records, a greater degree of assistance to farmers will 

 be necessary with these accounts, and for this pur- 

 pose the country 'O-,ting_s officers of the committee 

 will be used in the following way : 



1107. In each local area, a group of typical and 

 representative farms will be formed. The costings 

 oflieer will be made responsible for this group. He 

 will visit each farm periodically and will give 

 necesary advice and assistance to the farmers as 

 regards the records. The farmers will bo asked to 

 keep the original record of the analysis of labour, 

 consumption of foods, etc., on forms rendered 'as 

 simple as possible, and tho costings officer will under- 

 take the necessary further analysis and tabulation, 

 and will then forward the results to the Head Office 

 of the Costings Committee. 



1108. Owing to tho backward state of account 

 keeping in the industry, and the fact that the Com- 

 mittee possesses no compulsory powers, a considerable 

 amount of continued publicity and propaganda will 

 be necessary, and this will be undertaken by means 

 of the press, farmers' meetings, issue of pamphlets 

 and publications, agricultural shows and market*. 



ft, etc. 



4. Accounts Available. 



1109. So far as can bo noortainrd there aro very 

 few reliable cost account* in existence, although 



niimcrniis estimates of doubtful value are put for- 

 ward from time to time. 



1110. There is a much larger number of financial 

 accounts of various kinds, the majority of which are 

 not audited, and an annual inventory is in many cases 

 not taken. 



1111. In a large number of cases some analysis of 

 the labour is also kept in a, labour book and in certain 

 cases this might lx; made a foundation for an invest!-, 

 pation into the costs of the different branches of thje 

 farm, though such investigation work would involve 

 the expenditure of some time and would be of only 

 approximate accuracy. 



1112. R .should be remembered that, generally 

 (peaking, the farms where accounts are kept would 

 bo th larger and better class Farms and to that ex- 

 tent not representative of the industry as a whole. 



5. Financial Accounts. 



1113. Owing to the operation of the Income Tax 

 assessments and other causes, farmers in much larger 

 numbers are now said to be keeping financial accounts. 



1114. The difficulty involved in keeping these 

 accounts lies not so much in the current day-to-day 

 book-keeping work, but in the opening of the 

 ai-runt* in the first instance, and in the annual 



2.M25 



balancing and closing u, and preparation of the 

 inventory, and it is in this work that the local book- 

 keeping Bureaux previously referred to would prove 

 useful. 



1115. In comparing financial results as shown by 

 accounts care must be taken that profits are arrived at 

 on a common basis, e.g., that all receipts and credits 

 have been included in each case, and that the nature 

 of the expenses charged against the profits is also 

 uniform as regards: 



Personal drawings and private expenses. 



The cost of farm produce consumed by the house- 

 hold. 



The cost of improvements or other capital outlay 

 as distinct from recurring revenue charges 

 for repairs, etc. 



Interest, including interest on capital. 



Amounts owing to and by the farm at the date of 

 the balance sheets. 



Labour contributed by the family. 



Depreciation. 



In the case of home farms, supplies to and 

 work done for estate owner, etc. 



1116. Also, the basis on which the annual valua- 

 tion has been prepared (e.g., whether cost price or 

 market value) has a material bearing on the profit 

 shown for that year. 



6. Cost Accounts. 



1117. As has been stated, this branch of accounts 

 has hitherto received very little attention from the 

 general body of farmers. The additional records 

 necessary, in order that the cost of each branch of 

 the farm may be shown are : a record and analysis 

 of labour (man, horse, and tractor), foods consumed, 

 manures and fertilisers applied, seeds used, etc. an 

 apportionment over the several branches of the farm, 

 of the amount of the rent and rates, unproductive 



and idle time, and general overhead expenses the 



unexhausted values of manures and the cost of clean- 

 ing land, must be spread over the crops in the rota- 

 tion, and an adjustment made in respect of the 

 manurial values of foods consumed by the live stock. 



[This concludes the evidence-in-chief.] 

 Chairman: Then I will ask Mr. Walker to begin his 

 questions on the subject. 



1118. Mr. Walker: The Agricultural Costings Com- 

 mittee, I believe, is a Committee set up for the pur- 

 pose of obtaining information concerning the cost of 

 production in the industry? Is not that so? Yes. 



1119. Do your Committee then assist agriculturists 

 to keep accounts? We shall have to assist the indus- 

 try, to some extent, to keep accounts. 



1120. At whose expense? At the expense of the 

 Committee, for the time being. 



1121. In other words, at the public expense? Yes, 

 at the public expense. 



1122 Is one of the objects of the Committee to use 

 the information when obtained, for the purpose of 

 fixing and determining wages, or to assist in the fixing 

 or determining of wages? That has never been speci- 

 fied as one of the objects of the Committee ; but the 

 results obtained cannot fail but to be helpful in the 

 consideration of all such questions as wages and other 

 important questions affecting the industry. 



1123. I put that question, because in your evidence- 

 in-chief you use these words: "The Wages Boards 

 have been handicapped in their efforts to determine 

 rates of wages " owing to the cost of production, end 

 so on? Quite. One of the objects of the Committee is 

 to got such information as may be required from time 

 to time by the Agricultural Wages Boards. 



1124. So that there is a connection between the Agri- 

 cultural Costings Committee and the Agricultural 

 Wages Board to that extent? Yes. 



1125. That is clearly understood, so far as your Com- 

 mittee is concerned? That is so. One of our object* 

 is to get such information as may be required by the 

 Agricultural Wages Boards. 



1126. Has that information been sought by anyone 

 eonnoctod with tho Wages Board of Agriculture itself? 

 The Irish Wages Board lias asked us if we have any 

 information yet with regard to tho rost of production 

 of cereals. 



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