Guidance for determining the amortization of biological assets in accordance with IAS 41

Abstract

The Biological Asset within the productive company is one of the fundamental pillars when analyzing the reasonableness of the amortization process that will have the active front to the production obtained during a period. At present, implementing a change within an established process generates great contradictions, because process analysis, results optimization and control of activities that help to obtain improvements at the financial level prevail. The objective of this article is to analyze the process for the calculation of the amortization of the biological assets under the norm “International Accounting Standards IAS 41”.As for the research method, it is of documentary type with a descriptive scope, under the deductive method. The source of information for the treatment of the data is a productive company of the poultry sector, to know the steps to obtain the amortizable value per month of the productive lots of the analysis company.The main conclusion is that the steps established to arrive at the value that will subsequently be recorded in a clearly accountable way the treatment of the biological asset throughout its production stage, although the calculation to determine the value allows analyzing the amortization cost per total units produced During the month, it is necessary to emphasize that the amount in books will be reflected during the cost of the egg during the closing month in the Inventory account.