{"id":435,"date":"2025-08-08T16:05:19","date_gmt":"2025-08-08T16:05:19","guid":{"rendered":"https:\/\/cfo-ready.com\/?p=435"},"modified":"2025-08-08T16:05:21","modified_gmt":"2025-08-08T16:05:21","slug":"diferencia-activos-biologicos-productores-nif-e1","status":"publish","type":"post","link":"https:\/\/cfo-ready.com\/en\/diferencia-activos-biologicos-productores-nif-e1\/","title":{"rendered":"Difference between Biological Assets and Producing Biological Assets according to NIF E-1"},"content":{"rendered":"

1. Definition and Classification according to NIF E-1<\/strong><\/h3>\n\n\n\n

The NIF E-1<\/strong> It establishes the accounting and treatment for agricultural activities, focusing on the measurement, valuation, and presentation of biological assets and biological production assets. This regulation is crucial for agricultural companies, since the correct classification and measurement of these assets directly impacts financial statements.<\/p>\n\n\n\n

What are Biological Assets?<\/strong><\/h4>\n\n\n\n

The biological assets<\/strong> are those that, by their nature, undergo biological transformations such as growth, reproduction or degeneration. These assets are intended for the direct sales<\/strong> wave harvest<\/strong>, and in many cases, are considered agricultural inventories.<\/p>\n\n\n\n

    \n
  • Valuation<\/strong>: Biological assets are valued at Fair Value Less Costs to Sell (FVCDS)<\/strong>, provided there is an active market that allows determining the selling price. If there is no reliable market, they are valued at acquisition cost<\/strong> and transformation cost<\/strong>.<\/li>\n\n\n\n
  • Common examples<\/strong>:\n
      \n
    • Agricultural crops such as corn, wheat or soybeans<\/li>\n\n\n\n
    • Broiler chickens<\/li>\n\n\n\n
    • Fish in hatcheries<\/li>\n\n\n\n
    • Pigs for marketing<\/li>\n<\/ul>\n<\/li>\n\n\n\n
    • Shelf life<\/strong>: Short term, since their life cycle is not extensive and they are expected to be harvested or sold in less than a year.<\/li>\n\n\n\n
    • Accounting treatment<\/strong>:\n
        \n
      • It is recognized that change in value<\/strong> of the biological asset throughout its production cycle (according to the VRMCD) until it is sold or harvested.<\/li>\n\n\n\n
      • Income from the sale of biological assets is recognized when the sale is made<\/strong>.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n

        What are Biological Producer Assets?<\/strong><\/h4>\n\n\n\n

        The producing biological assets<\/strong> are those intended to generate agricultural products in a manner continuously and over several production cycles<\/strong>These assets are not sold directly, but remain in production for years.<\/p>\n\n\n\n

          \n
        • Valuation<\/strong>: The producing biological assets are recorded at acquisition cost<\/strong> and transformation<\/strong> until they are ready to produce. These assets are then depreciate<\/strong> throughout its productive lifespan.<\/li>\n\n\n\n
        • Common examples<\/strong>:\n
            \n
          • Fruit trees (avocados, mangoes, citrus fruits)<\/li>\n\n\n\n
          • Vines for grape production<\/li>\n\n\n\n
          • Dairy cattle<\/li>\n\n\n\n
          • Laying hens<\/li>\n<\/ul>\n<\/li>\n\n\n\n
          • Shelf life<\/strong>: Long term, since these assets are expected to be productive for several years or even decades.<\/li>\n\n\n\n
          • Accounting treatment<\/strong>:\n
              \n
            • Initially, they are recognized at acquisition cost and capitalized as fixed assets<\/strong>.<\/li>\n\n\n\n
            • Depreciation<\/strong>: It is calculated and recognized periodically as the producing biological asset is used for the production of goods or services.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n
              \n\n\n\n

              2. Accounting Comparison and Distinction<\/strong><\/h3>\n\n\n\n
              Feature<\/strong><\/th>Biological Assets<\/strong><\/th>Biological Active Producers<\/strong><\/th><\/tr><\/thead>
              Main Objective<\/strong><\/td>Direct sale or harvest<\/td>Production over several production cycles (long-term)<\/td><\/tr>
              Valuation<\/strong><\/td>Fair Value Less Costs to Sell (FVCDS) or cost if there is no market<\/td>Acquisition cost plus depreciation<\/td><\/tr>
              Shelf life<\/strong><\/td>Short term (life cycle less than one year)<\/td>Long term (life cycle greater than one year)<\/td><\/tr>
              Recognition in Results<\/strong><\/td>Changes in value (revaluations)<\/td>Periodic depreciation (according to useful life)<\/td><\/tr>
              Common Examples<\/strong><\/td>Crops, chickens, fattening fish<\/td>Fruit trees, dairy cows, laying hens<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
              \n\n\n\n

              3. Practical Example with Accounting Entries<\/strong><\/h3>\n\n\n\n

              Case 1: Avocado Plantation (Biological Asset Producer)<\/strong><\/h4>\n\n\n\n

              Situation<\/strong>: The company Agropecuaria El Encino SA de CV<\/strong> has acquired 1,000 avocado trees to start a plantation. The acquisition value is $800,000 pesos<\/strong>, and the plantation is expected to begin producing in 3 years.<\/p>\n\n\n\n

                \n
              1. Initial Accounting Entry<\/strong>:
                The initial recording is made at its acquisition cost, since this is a productive biological asset. Concept<\/strong>Post<\/strong>Pass<\/strong>Biological asset producer \u2013 Avocados 1TP 4T 800,000 Banks or Accounts payable 1TP 4T 800,000<\/li>\n\n\n\n
              2. Depreciation Accounting Entry<\/strong>:
                Once the plantation begins to produce, depreciation is calculated and recorded annually. If the useful life is 15 years<\/strong>, the accounting entry for each year would be: Concept<\/strong>Post<\/strong>Pass<\/strong>Depreciation Expense$53,333Accumulated Depreciation$53,333 This entry will be repeated each year until the trees reach the end of their useful life.<\/li>\n<\/ol>\n\n\n\n

                Case 2: Chicken Fattening (Biological Asset)<\/strong><\/h4>\n\n\n\n

                Situation<\/strong>: The same company buys 5,000 broiler chickens<\/strong> for a value of $150,000 pesos<\/strong>The chickens are expected to be sold within 4 months.<\/p>\n\n\n\n

                  \n
                1. Initial Accounting Entry<\/strong>:
                  Chickens are biological assets intended for direct sale, so they are recorded as biological assets. Concept<\/strong>Post<\/strong>Pass<\/strong>Biological Asset \u2013 Broiler Chickens 1TP 4T 150,000 Banks or Accounts Payable 1TP 4T 150,000<\/li>\n\n\n\n
                2. Revaluation to VRMCD<\/strong>:
                  If at the end of the month the value of chickens increases to $170,000 pesos<\/strong>, the following revaluation entry is made to reflect the change in its value: Concept<\/strong>Post<\/strong>Pass<\/strong>Biological Asset \u2013 Broiler Chickens$20,000Profit from Valuation of Biological Assets$20,000<\/li>\n<\/ol>\n\n\n\n
                  \n\n\n\n

                  4. Conclusion<\/strong><\/h3>\n\n\n\n

                  The proper accounting treatment of biological assets<\/strong> and the producing biological assets<\/strong> According to NIF E-1, it is essential to accurately reflect a company's agricultural activity. Correct classification allows the financial statements to present a true picture of the company's financial position and performance.<\/p>\n\n\n\n

                    \n
                  • Biological Assets<\/strong>: They are intended for sale or direct harvest, and are valued at Fair Value Less Costs to Sell (FVCDS)<\/strong>.<\/li>\n\n\n\n
                  • Biological Active Producers<\/strong>: They generate products during several production cycles, and are valued at acquisition cost<\/strong> and then depreciate<\/strong> during its productive lifespan.<\/li>\n<\/ul>\n\n\n\n

                    Applying these principles correctly allows agricultural companies to comply with tax and accounting regulations, maintaining the transparency<\/strong> in their financial reports and ensuring the compliance<\/strong> of current Mexican legislation.<\/p>","protected":false},"excerpt":{"rendered":"

                    1. Definici\u00f3n y Clasificaci\u00f3n seg\u00fan la NIF E-1 La NIF E-1 establece la contabilidad y tratamiento para las actividades agropecuarias, que se centran en la medici\u00f3n, valuaci\u00f3n y presentaci\u00f3n de los activos biol\u00f3gicos y activos biol\u00f3gicos productores. Esta normativa es crucial para empresas agropecuarias, ya que la correcta clasificaci\u00f3n y medici\u00f3n de estos activos impactan […]<\/p>","protected":false},"author":2,"featured_media":31,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"off","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[69],"tags":[153,154,157,155,156],"class_list":["post-435","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-nif","tag-activos-biologicos","tag-activos-biologicos-productores","tag-nif","tag-nif-e-1","tag-nif-e-1-actividades-agropecuarias"],"yoast_head":"\nActivos Biol\u00f3gicos y Activos Biol\u00f3gicos Productores NIF E-1<\/title>\n<meta name=\"description\" content=\"Conoce la diferencia entre activos biol\u00f3gicos y activos biol\u00f3gicos productores seg\u00fan la NIF E-1. Aprende a valuarlos.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cfo-ready.com\/en\/diferencia-activos-biologicos-productores-nif-e1\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Activos Biol\u00f3gicos y Activos Biol\u00f3gicos Productores NIF E-1\" \/>\n<meta property=\"og:description\" content=\"Conoce la diferencia entre activos biol\u00f3gicos y activos biol\u00f3gicos productores seg\u00fan la NIF E-1. Aprende a valuarlos.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cfo-ready.com\/en\/diferencia-activos-biologicos-productores-nif-e1\/\" \/>\n<meta property=\"og:site_name\" content=\"cfo ready\" \/>\n<meta property=\"article:published_time\" content=\"2025-08-08T16:05:19+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-08-08T16:05:21+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cfo-ready.com\/wp-content\/uploads\/2025\/07\/que-hacemos_.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"350\" \/>\n\t<meta property=\"og:image:height\" content=\"800\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"hgalicia@cfo-ready.com\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"hgalicia@cfo-ready.com\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/cfo-ready.com\/diferencia-activos-biologicos-productores-nif-e1\/\",\"url\":\"https:\/\/cfo-ready.com\/diferencia-activos-biologicos-productores-nif-e1\/\",\"name\":\"Activos Biol\u00f3gicos y Activos Biol\u00f3gicos Productores NIF E-1\",\"isPartOf\":{\"@id\":\"https:\/\/cfo-ready.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/cfo-ready.com\/diferencia-activos-biologicos-productores-nif-e1\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/cfo-ready.com\/diferencia-activos-biologicos-productores-nif-e1\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/cfo-ready.com\/wp-content\/uploads\/2025\/07\/que-hacemos_.jpg\",\"datePublished\":\"2025-08-08T16:05:19+00:00\",\"dateModified\":\"2025-08-08T16:05:21+00:00\",\"author\":{\"@id\":\"https:\/\/cfo-ready.com\/#\/schema\/person\/f135be1eaf73b90855169ac5f77488f0\"},\"description\":\"Conoce la diferencia entre activos biol\u00f3gicos y activos biol\u00f3gicos productores seg\u00fan la NIF E-1. Aprende a valuarlos.\",\"breadcrumb\":{\"@id\":\"https:\/\/cfo-ready.com\/diferencia-activos-biologicos-productores-nif-e1\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/cfo-ready.com\/diferencia-activos-biologicos-productores-nif-e1\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/cfo-ready.com\/diferencia-activos-biologicos-productores-nif-e1\/#primaryimage\",\"url\":\"https:\/\/cfo-ready.com\/wp-content\/uploads\/2025\/07\/que-hacemos_.jpg\",\"contentUrl\":\"https:\/\/cfo-ready.com\/wp-content\/uploads\/2025\/07\/que-hacemos_.jpg\",\"width\":350,\"height\":800},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/cfo-ready.com\/diferencia-activos-biologicos-productores-nif-e1\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Portada\",\"item\":\"https:\/\/cfo-ready.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Diferencia entre Activos Biol\u00f3gicos y Activos Biol\u00f3gicos Productores seg\u00fan la NIF E-1\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/cfo-ready.com\/#website\",\"url\":\"https:\/\/cfo-ready.com\/\",\"name\":\"cfo ready\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/cfo-ready.com\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/cfo-ready.com\/#\/schema\/person\/f135be1eaf73b90855169ac5f77488f0\",\"name\":\"hgalicia@cfo-ready.com\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/cfo-ready.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/9d0d733043e1790b9a099cfebe8c88eb95d509f7a90bfb0cb1c24de874c8e49a?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/9d0d733043e1790b9a099cfebe8c88eb95d509f7a90bfb0cb1c24de874c8e49a?s=96&d=mm&r=g\",\"caption\":\"hgalicia@cfo-ready.com\"},\"url\":\"https:\/\/cfo-ready.com\/en\/author\/hgaliciacfo-ready-com\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Activos Biol\u00f3gicos y Activos Biol\u00f3gicos Productores NIF E-1","description":"Conoce la diferencia entre activos biol\u00f3gicos y activos biol\u00f3gicos productores seg\u00fan la NIF E-1. Aprende a valuarlos.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/cfo-ready.com\/en\/diferencia-activos-biologicos-productores-nif-e1\/","og_locale":"en_US","og_type":"article","og_title":"Activos Biol\u00f3gicos y Activos Biol\u00f3gicos Productores NIF E-1","og_description":"Conoce la diferencia entre activos biol\u00f3gicos y activos biol\u00f3gicos productores seg\u00fan la NIF E-1. Aprende a valuarlos.","og_url":"https:\/\/cfo-ready.com\/en\/diferencia-activos-biologicos-productores-nif-e1\/","og_site_name":"cfo ready","article_published_time":"2025-08-08T16:05:19+00:00","article_modified_time":"2025-08-08T16:05:21+00:00","og_image":[{"width":350,"height":800,"url":"https:\/\/cfo-ready.com\/wp-content\/uploads\/2025\/07\/que-hacemos_.jpg","type":"image\/jpeg"}],"author":"hgalicia@cfo-ready.com","twitter_card":"summary_large_image","twitter_misc":{"Written by":"hgalicia@cfo-ready.com","Est. reading time":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/cfo-ready.com\/diferencia-activos-biologicos-productores-nif-e1\/","url":"https:\/\/cfo-ready.com\/diferencia-activos-biologicos-productores-nif-e1\/","name":"Activos Biol\u00f3gicos y Activos Biol\u00f3gicos Productores NIF E-1","isPartOf":{"@id":"https:\/\/cfo-ready.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/cfo-ready.com\/diferencia-activos-biologicos-productores-nif-e1\/#primaryimage"},"image":{"@id":"https:\/\/cfo-ready.com\/diferencia-activos-biologicos-productores-nif-e1\/#primaryimage"},"thumbnailUrl":"https:\/\/cfo-ready.com\/wp-content\/uploads\/2025\/07\/que-hacemos_.jpg","datePublished":"2025-08-08T16:05:19+00:00","dateModified":"2025-08-08T16:05:21+00:00","author":{"@id":"https:\/\/cfo-ready.com\/#\/schema\/person\/f135be1eaf73b90855169ac5f77488f0"},"description":"Conoce la diferencia entre activos biol\u00f3gicos y activos biol\u00f3gicos productores seg\u00fan la NIF E-1. Aprende a valuarlos.","breadcrumb":{"@id":"https:\/\/cfo-ready.com\/diferencia-activos-biologicos-productores-nif-e1\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/cfo-ready.com\/diferencia-activos-biologicos-productores-nif-e1\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/cfo-ready.com\/diferencia-activos-biologicos-productores-nif-e1\/#primaryimage","url":"https:\/\/cfo-ready.com\/wp-content\/uploads\/2025\/07\/que-hacemos_.jpg","contentUrl":"https:\/\/cfo-ready.com\/wp-content\/uploads\/2025\/07\/que-hacemos_.jpg","width":350,"height":800},{"@type":"BreadcrumbList","@id":"https:\/\/cfo-ready.com\/diferencia-activos-biologicos-productores-nif-e1\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Portada","item":"https:\/\/cfo-ready.com\/"},{"@type":"ListItem","position":2,"name":"Diferencia entre Activos Biol\u00f3gicos y Activos Biol\u00f3gicos Productores seg\u00fan la NIF E-1"}]},{"@type":"WebSite","@id":"https:\/\/cfo-ready.com\/#website","url":"https:\/\/cfo-ready.com\/","name":"cfo ready","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/cfo-ready.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/cfo-ready.com\/#\/schema\/person\/f135be1eaf73b90855169ac5f77488f0","name":"hgalicia@cfo-ready.com","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/cfo-ready.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/9d0d733043e1790b9a099cfebe8c88eb95d509f7a90bfb0cb1c24de874c8e49a?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/9d0d733043e1790b9a099cfebe8c88eb95d509f7a90bfb0cb1c24de874c8e49a?s=96&d=mm&r=g","caption":"hgalicia@cfo-ready.com"},"url":"https:\/\/cfo-ready.com\/en\/author\/hgaliciacfo-ready-com\/"}]}},"_links":{"self":[{"href":"https:\/\/cfo-ready.com\/en\/wp-json\/wp\/v2\/posts\/435","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cfo-ready.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cfo-ready.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cfo-ready.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/cfo-ready.com\/en\/wp-json\/wp\/v2\/comments?post=435"}],"version-history":[{"count":1,"href":"https:\/\/cfo-ready.com\/en\/wp-json\/wp\/v2\/posts\/435\/revisions"}],"predecessor-version":[{"id":436,"href":"https:\/\/cfo-ready.com\/en\/wp-json\/wp\/v2\/posts\/435\/revisions\/436"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cfo-ready.com\/en\/wp-json\/wp\/v2\/media\/31"}],"wp:attachment":[{"href":"https:\/\/cfo-ready.com\/en\/wp-json\/wp\/v2\/media?parent=435"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cfo-ready.com\/en\/wp-json\/wp\/v2\/categories?post=435"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cfo-ready.com\/en\/wp-json\/wp\/v2\/tags?post=435"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}