Solution-Make the accounting associated with the operations

Make the accounting associated with the operations described

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Reference no: EM132984820

Biological Assets IAS 41

A livestock company is starting up in the field on October 1, 2019. It has begun to acquire steers from small farmers in the sector where it operates, with the idea of ??later selling them at the livestock fair in its region.
The selection process of the cattle to buy involves the acquisition of steers weighing more than 220 kilos, in order to ensure an excellent price at the fair.
In this way, he acquires 40 steers weighing 230 kilos each. The price per steer is $ 700,000.-

Additional data:

The sale price of a kilo of beef is around $ 3,000.-
The cost of transferring the steers amounts to $ 1,500,000.-
The commission for the sale of each steer amounts to 4% of the sale value.

Problem 1: Make the accounting associated with the operations described, and leave the balances expressed as indicated by IAS 41 as of December 31, 2019, assuming that the transfer and definitive sale of the steers is considered to be carried out in January 2020 .

Reference no: EM132984820

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Make the accounting associated with the operations described

Reference no: EM132984820

Reference no: EM132984820

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