The topic of the thesis is research on accounting and financial reporting of the agricultural sector in European Union programs. The agricultural sector is one of the key factors in the economy of every country, and also to all members of the European Union. The European Union, through its programs specializing in agriculture, supports the development of agriculture in each of the member states through project grants, subject to conditions. The purpose of the diploma thesis is to theoretically present the method of accounting monitoring and reporting of European Union programs for the agricultural sector. Secondary data sources, such as books, articles from scientific journals and websites with current data on agriculture were used to write the thesis. The methodology that were used were methods of induction and deduction, methods of analysis and synthesis, methods of comparison, methods of classification, methods of description, statistical method and descriptive method. The first part of the paper defines the theoretical framework in which the subject and structure of the paper are defined, as well as the goals, methods used during the writing of the paper and the content and structure of the thesis with which the thesis is formed. The following is an analysis of the European Union's programs in agriculture and EU policy, which is historically described in addition to the above guidelines and principles that guide the policy. IPARD and SAPARD programs are programs that list the measures they are taking and their success in rural areas. The Agency for Payments in Agriculture, Fisheries and Rural Development is an agency that provides support to farmers in monitoring new projects with application deadlines and the amount of EU funding set aside for that project. Accounting processes of reporting and documentation of costs and types of costs are presented on the example of Croatia through the Croatian national legislative framework and its comparison with other EU countries.