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SUBPRODUCTS
Are those that arise from the same process and that process emanate one several
main products and other secondary product, the latter are called by-products
Companies must have criteria to determine which will be considered principal and
which secondary according to their relative value
Chemical byproducts: they include all the products in solid or gaseous state,
originated in processes of organic and inorganic chemistry and that are not
included in another family
Industrial production: The industry is the set of processes and activities whose
purpose is to transform raw materials into processed products, massively. There are
different types of industries, depending on the products they manufacture.
For example, the food industry is engaged in the production of products for food,
such as cheese, sausages, preserves, drinks, etc.
TRATAMIENTO CONTABLE
ACCOUNTING TREATMENT
DEFINITION: The accounting treatment of the stock allows to determine the real
result of the company.
In spite of the above, the true importance in relation to the differentiation between
the main product and the by-product lies in its accounting treatment, there being
two possible alternatives in terms of the valuation of the by-products:
B y C = Subproductos
Este tratamiento implicaría por un lado que el beneficio contable por la venta del
subproducto fuese cero, y por otro lado que se atribuyan al producto principal la
totalidad de los costes conjuntos descontando dicho valor neto de realización.
A = main product.
B and C = Byproducts
This treatment would imply on the one hand that the accounting profit from the sale
of the by-product would be zero, and on the other hand that the total of the joint
costs will be attributed to the main product, discounting said net realizable value.
This would imply that at the point of separation all the joint costs would be
allocated to the main product, the secondary product being valued only for its
autonomous costs if it had them, and if not, the sale of the by-product would imply
full benefit for the company.
In any case, the use of one or the other criterion would not alter the overall benefit
of the company, so the use of one or the other method will depend on external
circumstances.
. For example, if the byproduct had a stable and uniform market, the first criterion
could be used, on the contrary, if the market was unstable, it would be more
convenient to apply the second method, to avoid having to recognize losses in the
event of possible changes in the price. selling.