Group No. 4.

Forestry Business Accounting

INTRODUCTION
Forestry activity is considered profitable, both nationally and internationally. It requires
approximately twelve to twenty years for its exploitation; That is, the time in which the
forest plantation is in optimal conditions for exploitation and marketing. Therefore, the
largest investment that the forestry company makes is in the area of labor, because in
plantation activities more human labor is used than mechanized labor.

In this research work, a practical case is formulated that shows the different structures of
the cost, activity and employee catalogues, which ultimately allow the elaboration of the
labor cost structure for accounting and analysis.

It also contains some articles of the Forestry Law, which regulates forestry companies.

THE FOREST COMPANY

Definition

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It is an economic entity, owner of considerable areas of land, and that is dedicated and concerned
with the development and exploitation of forestry projects, in order to contribute to the country
through reforestation and, in turn, generate profits for the capital invested.

Due to the nature of the activity, the forestry company carries out studies on the viability of forestry
projects, and in the first years of the project's execution, large amounts of money are invested
without generating income, and that is why this type of activity seems be exclusive to entities with
large capital, which are willing to invest for a time, hoping to receive a certain profit margin.

Forestry company objectives

Among the specific objectives of forestry companies, we can mention:

a) Develop forest plantations that provide wood in sufficient quantities and with the quality
required by industries dedicated to transforming wood into finished products.

b) Achieve economic and lasting success through forestry exploitation, increasing the
productivity of natural resources, involving forestry and industrial technological
innovations, to minimize the negative environmental impact of this exploitation.

c) Contribute to natural, social and economic progress in local communities and the
personnel involved in the development of the plantation.

d) Contribute to the creation of forestry culture.

Forestry Activity

“Guatemala is derived from the Nahuatl word guauhtemallan which means “Land of Trees”, which
highlights the significant presence of forests in our country since ancient times.”

Our country has a territorial area of 108,889 km² with 52% of the territory destined for forestry.
The National Forest Institute (INAB) estimates that forests cover 42% of the national territory.

With the uncontrolled advance of deforestation in our country, the State promotes companies and
individuals who own large areas of land to get involved in forestry activity, this activity being the
set of efforts aimed at developing plantation
projects, which receive the State economic
benefits known as “Forest Incentives”, in
addition to the future use of the industrialization
of the products resulting from this activity.
FOREST

They are all lands that support a plant group

dominated by trees or shrubs of any size, whether
they grow spontaneously or come from sowing or
plantation, capable of producing wood, firewood
or other forest products.

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Forests exert an influence on the climate, soils and the environment in general, a characteristic
that is evident today, with the phenomenon of global warming.

Forest can also be defined as a large group of trees that cover extensive areas, forming thickets
and that little by little lose their individuality, to form the forest itself.

It is the ecosystem in which trees are the dominant and permanent plant species, they are classified
into natural forests without management, natural forests under management and natural forests
under agroforestry management.

Unmanaged natural forests are those caused by natural regeneration without human influence, and
managed natural forests are caused by natural regeneration and are subject to the application of
silvicultural techniques.

Natural forests under agroforestry management are so called because forest management and
agriculture are practiced together.

FORESTATION

It is the action of planting forest trees in sectors where

they have not existed. It is also defined as the action of
populating land that lacks them with tree or shrub
species, for the purposes of preservation, protection or
production.

It is known as an artificial method through which it is

possible to incorporate trees in a specific area, which,
not having tree vegetation at present, can potentially
have it.

Reforestation

Reforestation is understood as the conversion by

direct human activity of non-forested lands into forest
lands through plantation, sowing through natural
seedbeds on lands where there were formerly forests,
but which are currently deforested; In other words,
reforestation consists of the action of repopulating
sectors where trees exist and that were harvested with
forest species, or the set of actions that lead to
repopulating a certain area with trees.

Forest Plantation

A forest plantation is also known as a forestry project and consists of the establishment of trees that
make up a forest mass that has a design, size and species to meet specific objectives such as

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productive plantation, energy source, protection of agricultural areas, protection of water bodies. ,
correction of erosion problems or silvopastoral plantations.

Precisely, these objectives allow determining the planting density, the yields and costs involved in
planting, the selection of the most suitable species and their programming for production, and for
all this to be possible, it is essential to carry out a prior study and careful of the natural conditions
in which the plantation will develop.

Planting stages

The duration of the projects depends on the type of plantation to be established. In the case of
reforestation projects, they are divided into three stages; establishment, maintenance and harvest.

a) Establishment stage

The creation of new forest resources, through

plantations established by man, can contribute
positively to recovering lands that, due to
socioeconomic, technological conditions or
inadequate use, are abandoned and without the
slightest productive use, allowing the generation of
wealth for the benefit of their owners.

The establishment stage in a plantation consists of

the study, the preparation of the land and the sowing
of the seed, so the proper establishment of a
plantation considers a series of activities aimed at
modifying the site towards a better condition of soil,
in such a way that the available resources are concentrated to promote the initial growth, survival
and subsequent development of the plant.

The development of this stage increases the productivity of the soil, economically favors the
generation of profitability for the owner, creates sources of employment for the people who carry
out the activity, and finally, contributes to the protection and conservation of natural resources.

The success of the plantations that any producer wishes to establish, whether a small owner or a
large company, is subject to the correct initial decision, in terms of aspects such as: the selection of
the site and the most appropriate species for the crops. climate and soil conditions, the location and
preparation of the land, the pre- and post-planting cultural activities and care, the quality of the
plants, the season and planting technique mainly.

In this stage of the project, forestry activities are applied such as general cleaning of the area, road
cleaning, tree removal, digging, hauling and planting, fertilization, pruning and weeding.

b) Maintenance stage

After the establishment stage, the project maintenance stage continues. In this stage, activities and
efforts are carried out aimed at the optimal development of the forestry project. This culminates
when the plantation is suitable for use.

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In the maintenance phase, activities such as pruning, weeding, weeding, manual strip cleaning,
mechanized strip cleaning, herbicide strip cleaning, plating and shading, fertilization, tree
marking, sanitation, preventive control of pests and diseases, and firebreak rounds.

c) Harvest stage

When the forestry project has reached the

age and diameters required for
commercialization, it is in the appropriate
conditions to enter the third and final stage
of plantation, harvesting.

This stage consists of the entire process to

exploit and take advantage of the forest
resource, which for a long time has been
invested in large amounts of money and
effort in the establishment and maintenance
stages.

At the end of this stage, the forestry

company markets the products and begins
the return of the invested capital and then
profits. The estimated time is twelve to
twenty years per project.

The activities involved in this phase are the dragging of logs, chainsaws in classification, cubing of
wood, stowage of wood, oxen drivers, tractor drivers, debarking of poles, activities for the
production of log wood, blocked wood, charcoal and firewood, mainly.

Standing timber plantations

The forestry company, after completing the maintenance stage, verifies that the plantation is in the
necessary conditions to be exploited. These conditions lie in the age of the plantation and the
diameters they have reached.

At that time, the management of the forestry company can decide to begin the harvesting stage,
cutting down the forests and extracting their forest products or selling the plantation as a
“standing timber plantation.”

This consists of, once the maintenance stage is completed, the project is sold, transferring to the
buyer all the costs incurred for extracting the wood.

In this case, the depreciation of the plantation does not apply, only the transfer of plantations in
process (Current assets) to forest plantations (Non-current assets).

Regulatory Institution of Forestry Activity

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The Guatemalan forestry company is regulated by the National Forest Institute (INAB). This state
institution is dedicated to the administration of forested lands and lands with forestry vocation
outside the Protected Areas, its mission being to “execute and promote national forestry policies
and facilitate access to technical assistance, technology and forestry services, to groups of national
and international investors, municipalities, universities, foresters and other actors in the forestry
sector, through the design and promotion of strategies and actions that generate greater economic,
ecological and social development of the country."

Powers

The powers of the National Forest Institute are clearly established in the Forestry Law, they are
interpreted in terms of promoting the conservation, production and restoration of forests and
forestry lands; and specifically they are the following:

I. “Execute forest policies that meet the objectives established in the Forest Law.

II. Promote and encourage the country's forestry development through sustainable forest
management, reforestation, forestry industry and crafts, based on forest resources, and the
protection and development of watersheds.

III. Promote research to solve forest development problems through programs executed by
universities and other research entities.

IV. Coordinate the execution of forestry development programs at the national level.

V. Grant, deny, supervise, extend and cancel the use of forestry concessions of licenses for the
use of forest products, outside protected areas; develop programs and projects for forest
conservation and collaborate with entities that require it.

VI. Encourage and strengthen technical and professional careers in forestry.

VII. Prepare the specific regulations of the institution for the subjects within its jurisdiction.

VIII. "The other powers that correspond to it, in accordance with the provisions of the Forestry
Law and other provisions that are applicable."

PINFOR Forest Incentive Program

The National Forest Institute promotes the Forest Incentives Program (PINFOR) as a tool of long-
term national forestry policy.

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This program began its actions in 1997 and is valid until 2017, with the objective of encouraging
the maintenance and creation of forests for the generation of environmental services and to
maintain and improve sustainable forest production by incorporating natural forests into the
economic production, through investment in forestation, reforestation and natural forest
management activities.

The incentive consists of cash payments that the State grants to the owner of forestry lands for
executing reforestation or natural forest management projects.

The minimum area to obtain the forest incentive is two hectares in the same municipality. Voluntary
forest plantations are those covered by the forestry incentive program.

LABOUR

Definition
“The element of production cost called Labor, includes the application of manual labor to
production.” It constitutes the most important element in a forestry company. It presents variations,
such as hiring, remuneration, ordinary working hours, overtime, days off, days of rest, bonuses and
labor benefits.

The labor category is the highest in forestry accounting, making it one of the most important
factors in the development of the plantation, reaching up to 70% of the total invested in the project.

Labor presents many variations in the form of registration and payment, so it can be classified by
its application, into direct labor and indirect labor. Due to the form of remuneration, it is classified
based on time, production or piecework; according to the work schedule in ordinary salary and
extraordinary salary, and according to the work day, in daytime, mixed and nighttime hours.

These classifications are defined both by the Guatemalan Labor Code, decree number 1441, and
what is applicable in accounting technique or practice.

The objective of being very precise in the accounting record of operations is to reveal the real cost
and profitability of the investment in a forestry project.

Forest accounting
Forest accounting consists of a series of techniques that provide information on economic,
financial and social events arising from forestry activity.

It is based on techniques to record, classify and summarize in a meaningful way and in monetary
terms, the transactions and events of the forestry company.

This type of accounting, in countries like ours, is not common, due to the complexity of forestry
activity and the few years that our country has been venturing into forestry and environmental
issues.

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Forestry costs, like the costs of other transformation activities, include the three elements of cost,
these being: raw materials, labor and indirect production costs. Of the three cost elements, the
most relevant and material is labor.

COST CENTERS AND FOREST ACTIVITIES

Cost centers

They are specific places where invested monetary values are concentrated. The cost center refers to
the place where the activities or jobs are carried out.

In forestry activity, its use is necessary to determine the value invested in the forestry project.

Classification of centers
a) Administration

In this center, the salaries of the administrative staff of the farms are recorded, as well as the
salaries of the people in charge of cleaning, drivers and cooks, among others.

b) Off-plantation centers

These centers are those that are located around the forestry project. They regularly house
administrative offices, warehouses and workshops.

c) Households

This cost center records the labor invested in the repair and maintenance of homes on the farm.

d) Nurseries

It is the place where the mastic, trees or small plants are temporarily transplanted, to later be
moved and planted in their final place.
The nursery exists in forestry companies that want to ensure the quality of the seed and therefore
the properties of the wood. That is why they decide to start the planting and growing process
themselves, avoiding acquiring the already developed plant without knowing its properties.

e) Plantations

This center is the strongest in monetary and work terms for an agricultural or forestry company. It
is in this center where the three stages of planting, establishment, maintenance and harvest are
concentrated.

Each of these stages has different activities or jobs.

The plantation center is subdivided into projects and the projects in turn into lots, thus allowing a
better analysis of the costs invested.

f) Paddocks and animals

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In this center, the labor and the investment in the care of the livestock is recorded.

Livestock are used as drag animals, reaching places where agroforestry machinery cannot reach
due to terrain conditions.

g) Infrastructure

It refers to the access roads to the farms, which are generally located away from urbanized
populations and subject to climatic changes. This situation affects the increase in the cost and
decrease in the profitability of the operation, so an adequate infrastructure turns out to be
convenient for the productivity of the company.

h) Production areas

For purely accounting purposes, this cost center is created, in which the performance of the raw
material can be measured.

The wood extracted from the plantation can be exported to other countries or transformed in
Guatemalan industries. The leftovers from this transformation are used for the production of
charcoal or firewood, among others.

In this center most of the work of the third stage of the plantation called “Harvest” is recorded.

When the plantations are sold as “Standing timber plantations”, the company does not carry out
harvesting activities, since these are borne by the acquiring company.

Activities

The activity on a farm is synonymous with labor and refers to the work to be carried out by
volunteer personnel, day laborers or crew members.

It is vital that the topic of activities is carefully evaluated, since it is necessary to have the support
of experts in the forestry and, at the same time, accounting issues, who will define which stage it
corresponds to, the objective, the procedure, the expected performance, calculation and accounting
for each activity.

The result of the cost records for each forestry project will depend on the above.

Classification of activities

a) Administrative activities
Administrative activities are regularly carried out by the permanent person of the farm. Sometimes
it is also used for all those activities carried out within the administrative office of the forestry
company.

b) General activities
General activities include the work carried out by general maintenance personnel, tractor drivers,
assistants and guardians, among others, who participate indirectly in reforestation projects, being
essential for the direct labor to correctly develop the activities related to the forestry project.

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c) Nursery activities
It is the set of activities, in which volunteer staff or day laborers plant and transplant trees or small
plants from the mastic, to then be moved and planted directly in the selected land.

There are many activities related to the nursery, which must be precise in relation to the objective,
procedure and expected performance; Any variation can generate higher costs in the plantation. Of
the activities in the nursery the following can be mentioned:

d) Research and development activities

Research and development is generally called a department or unit in charge within the
administration of farms, of organizing, coordinating and directing plot measurement activities.
These activities determine the annual growth in volume per hectare of a growing forest or
plantation mass.

The function of this unit or department is very useful for investors, because it makes growth
projections, and provides information on future volumes of wood, its quality and sales prices; It is
also responsible for carrying out all types of measurements and analyzes related to the
establishment stage, carrying out experiments in which the variety or type of trees to be established
can be evaluated according to the characteristics of the farm and the trees in the plantation.

e) Plantation activities

Activities in the establishment stage

The works carried out in the establishment stage are those that allow the land to be adapted,
providing the appropriate conditions to start the forestry project.

In this stage, activities such as: establishment supervision, land preparation, planting, weed
controls, fertilization, pest and disease control, among others, are carried out.

The optimal development of the forest plantation depends on this stage, so you must be very careful
in preparing the land and selecting the seed.

Activities in maintenance stage

The works carried out in the maintenance stage are those that provide the forestry project with
optimal conditions for its proper development and growth.

Among the activities that we can mention at this stage are: Supervision and maintenance, weed
control, fertilization, pest control, fire control and silvicultural management among others.

Activities in the harvest stage

The work carried out in this last stage of the plantation, called harvest, is those aimed at
maximizing the yield of the plantation, that is, the stage in which the wood from forestry projects is
dumped, cut and extracted.

Forestry companies that industrialize their products necessarily carry out activities typical of this
stage, among which we can mention: dumping trees, hauling, chainsaws in classification, making
poles, firewood and charcoal, among others.

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Another way to market forestry projects is to sell the project as “Standing timber plantation”. If the
forestry company adheres to this modality, it would only carry out activities in the establishment
and maintenance stage, with the acquiring company being the one who would carry out the
harvesting activities.

DISTRIBUTION OF THE LABOR ACCORDING TO ITS ACTIVITY AND CENTER

OF COST IN A GUATEMALAN FORESTRY COMPANY

The company Forestal Madera para Siempre, SA, began operations in 1998, dedicating itself to the
development of forestry projects, owning the Farm called “Finca Baltimore”, with a territorial
area of 2,750 hectares.

Both the company and the farm are located in the municipality of Livingston, department of Izabal.

The company under study is dedicated to the development of forestry projects, but not to
exploitation, that is, when the plantations have reached the appropriate age and diameters for
exploitation, the company sells the plantations as “Standing timber plantations”, The extraction
costs are borne by the company that acquires the plantation.

The labor category in the forestry company significantly constitutes the highest investment
category, being at the same time a difficult category to control, distribute and record its costs, so
the cost structure that will be designed with the results This research will be developed with special
emphasis on the distribution of labor.

With this cost structure, in addition to easy understanding, analysis and interpretation, the correct
and timely registration of labor is expected.

The cost structure allows labor to be distributed according to cost centers or activities carried out,
reflecting the investment made in the different forestry projects.

For the purposes of this practical case, the year from January 1 to December 31, 2010 is
considered, so the salary to be considered is the one established in government agreement 347-
2009 issued on December 30, 2009, which establishes For the year 2010, a minimum wage per day
of Q 56.00 for agricultural and non-agricultural activities, equivalent to Q 7.00 per hour.

General information

During the years of creation of the company, until 2009, the forestry company Madera Para
Siempre, SA, does not have adequate control over what was invested in its different forestry
projects, disbursing large amounts of money paid for work that the staff has done. carried out on
the farm, without there being a control that allows:

• Verify that the workers who are paid really exist and that said payment corresponds to
remuneration for the work performed.

• Control over the work carried out daily on the farm, as well as its hours, days and daily
production.

• Control over the personnel who attend the farm daily.

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• Control over the days, hours and production that each worker carries out daily.

• Knowledge of what was invested according to the different stages of the project.

• Knowledge of what was invested according to the different cost centers.

Of personal

An average of 250 people from the surrounding area and nearby communities attend the Baltimore
farm daily. These people are considered temporary personnel.

Temporary personnel are received and distributed by field foremen. Each foreman is in charge of
between twenty-five to thirty people per day, responsible for instructing, directing and supervising
the work carried out by each worker.

The field foreman, to distribute the workers and assign them a workplace (cost center) and an
activity to be carried out, is based on the Annual Operations Plan (PAO).

The Annual Operations Plan chronologically details the activities to be carried out during the
development of the project, considering the stage of the plantation and the different lots where the
work will be carried out.

The remuneration that volunteer workers receive is received biweekly, based on the current
legislation of Guatemala, which establishes, among others, the minimum wage, bonus, days off and
the seventh day.

In addition to the temporary staff, five people work as permanent staff at La Finca Baltimore, these
being the following:
Employee Position Ordinary Salary
Carlos Gomez General manager Q 5,000.00
Francisco Abac General counter Q 4,000.00
Marlon Mejia Operations coordinator Q 3,500.00
Paolo Rivas Field technician Q 3,500.00
Mario Gonzalez Field technician Q 3,000.00

All permanent staff are recognized thirty-six (36) overtime hours per month.

The company provides monthly labor benefits, these being: compensation, bonus 14, bonus and
vacations. In the same way, contributions such as the employer fee and INTECAP.

Other expenses and relevant aspects

1. The Baltimore farm at the end of 2009 had two forestry projects. In 2010, the development
of a new forestry project began, this being Forestry Project III.

2. In addition to labor costs, the company incurred the following expenses:

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Concept Worth
Personal transportation Q 3,536.00
Food Q 45,699.00
Attention to temporary staff Q 85,005.00
Travel expenses Q 22,375.00
Attention to permanent staff Q 61,840.00
Electric power Q 23,643.00
Fuels Q 176,322.00
Planting materials Q 83,890.00
Equipment repair Q 29,467.00
Saw chain repair Q 34,830.00
tractor repair Q 437,639.00
mower repair Q 25,910.00
Repair of farm facilities Q 191,273.00
Fertilizers Q 97,819.00
Herbicides Q 130,868.00
Insecticides Q 87,656.00
Freight Q 183,857.00
Roads Q 702,638.00

3. The partners contribute to the company a transfer worth Q 8,000,000.00, so that it can
develop its activities according to plan .

4. Among the assets that still have value are machinery and livestock.

5. During the year 2010, the following were paid for fees and benefits:

Concept Worth
Employer fee Q 619,094.00
Labor quota Q 256,231.00
Bonus 14 Q 433,156.00
Bonus Q 433,354.00
Vacation Q 429,512.00

6. In December 2010, Project I is considered to be in optimal negotiation conditions. The

cost of the investment in the project amounts to Q 7, 334,750. The company Madera Para
Siempre, SA decides to sell it as a Standing Timber Plantation. The corresponding
accounting records were made in December 2010 and the project is expected to be sold in
2011.

Creation of labor cost structures for the company Forestal Madera Para Siempre, SA
To correct the deficiencies in previous years, during the year 2010, the different catalogs and
formats must be structured to finally create the structure of labor costs in centers and activities.

This requires a series of steps, these being:

a) Separation of hired personnel from the farm.

b) Creation of the employee catalog.
c) Creation of the activities catalog.

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d) Creation of the center catalog.

e) Creation of the daily work report.
f) Preparation of the attendance report of temporary workers at the farm.
g) Preparation of the labor cost structure
According to the activity carried out.
According to the cost center used.

a) Separation of hired personnel from the farm.

To carry out the company's activities, the farm requires two types of personnel, permanent
personnel and temporary personnel.

Permanent staff are those who are hired monthly. This type of personnel requires certain
specializations and academic levels to adequately carry out their work.

The main functions of permanent staff lie in collecting all information related to forestry projects,
information that is mostly generated by the work carried out by temporary staff.

This information is recorded, consolidated, processed and reported to the administration, who
compares what was executed with what was previously established in the Annual Operating Plan.

Temporary personnel are those who live around the farm or in the communities near it. It is also
known as volunteer staff, because they voluntarily come to the farm to carry out the work assigned
to them.

Due to the distance from their communities to the farms and the weather conditions among others,
these workers are absent several days a month, without this generating any type of sanction for
said absence, the company canceling only what they actually worked on.

The areas of land occupied by the farm are considerable, making it necessary to hire temporary
labor, with an average of between two hundred and fifty and three hundred workers attending the
farm each day.

They are assigned a job daily, which they must perform according to the instructions they receive,
complying with the set hours, required production or days established for each activity.

The importance of separating permanent personnel and temporary personnel lies in the fact that
the work performed by temporary personnel is measured and paid in different ways, including: per
day, hours and production, in addition to the number of employees who work for it. perform, while
for permanent staff, their salaries are agreed upon from the beginning and they receive the same
amount monthly, which allows the payroll calculation of permanent staff to be carried out easily.

Creation of the employee catalog.

The employee catalog consists of an ordered list of the farm's employees, which includes
information such as: code of the type of personnel to which they belong, correlative identification
code, name, personal identification document (DPI) number or identification number. ID and date
of entry.

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The employee catalog requires information, which will validate that the workers who are paid
really exist, so it is necessary to create a file that contains at least the information required by the
employee catalog and a photocopy of the document with which the worker is identified.

Below is a part of the Baltimore farm employee catalog, to show the minimum structure it must
contain:

WOOD FOREVER, SA
EMPLOYEE CATALOG
BALTIMORE ESTATE

Administrative (ADM)
Staff Code Name No. Identification card Admission date
ADM 1 Carlos Gomez Q-185693 01/01/1998
ADM 2 Francisco Abac Q-189874 01/01/1998
ADM 3 Marlon Mejia Q-181276 01/01/1998
ADM 4 Paolo Rivas Q-188364 01/01/1998
ADM 5 Mario Gonzalez Q-184018 01/01/1998

Temporary (BAL)
Staff Code Name No. Identification card Admission date
BAL 1 EULALIO HERNANDEZ Q-183215 01/01/1998
BAL 2 MATEO AC Q-186525 01/01/1998
BAL 3 SEBASTIAN CHE CHUB Q-182558 01/01/1998
BAL 4 LORENZO PAN XOL Q-185488 01/01/1998
BAL 5 JUAN YAT AC Q-187821 01/01/1998
BAL 6 VICTOR ABEL LOPEZ Q-182581 01/01/1998
BAL 7 SANTOS CHIQUIN AC Q-181254 01/01/1998
BAL 8 JUAN XOL POP Q-185872 01/01/1998
BAL 9 FAUSTINO CAAL ASIJ Q-185489 01/01/1998
BAL 10 FELICIANO CHE CHOC Q-185683 03/06/1998
BAL 11 AUGUSTIN XOL CHOC Q-187854 03/06/1998
BAL 12 OSCAR ICH COC Q-182178 03/06/1998
BAL 13 MIGUEL CHUB XOL Q-185478 03/06/1998
BAL 14 WILIAM QUINTANA TOBAR Q-186598 03/06/1998
BAL 15 WILLIAM JIMENEZ Q-183254 03/06/1998
BAL 16 SANTOS MATILDE RAMIREZ Q-189865 03/06/1998
BAL 17 JUAN PEREZ CHUB Q-183287 09/02/2001
BAL 18 PEDRO ICO YAT Q-182165 09/02/2001
BAL 19 ODILIO TIUL CAC Q-182198 09/02/2001
BAL 20 SANTIAGO XOL COC Q-187856 09/02/2001

Creation of the activity catalog:

The catalog of activities contains in a structured way the works carried out on the farm, using
codes that allow detailed and specific analysis of each of them, according to the work being carried
out, considering the stage in which the plantation is located. .

The determination of each activity requires a prior study, carried out by an expert in the forestry
area, which establishes the convenient way to measure the work, that is, by day, hour or
production.

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The more specific the catalog of activities is, the better the information will be analyzed.

The different activities into which the activity catalog is broken down are the following:
• Administrative activities
• General activities
• Activities in nurseries
• Research and development activities
• Activities in plantations
o Establishment stage
o Maintenance stage
o Harvest stage
• Activities in pastures
• Infrastructure construction and maintenance activities

An activity is equivalent to a day of work or a day's work. The wage can be measured per day, per
hour or per production.

Although the daily wage is equivalent to the minimum daily wage, established by decree 347-2009
of the Congress of the Republic, which sets a daily wage of Q 56.00 for agricultural activities,
equivalent to Q 7.00 per hour, in practice, if the worker does not comply with the established hours
of work or the required production, payment is made proportionally.

Below is the catalog of activities of the forestry company Madera Para Siempre, SA, of Finca
Baltimore:

WOOD FOREVER, SA
CATALOG OF ACTIVITIES
BALTIMORE ESTATE

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CODE ACTIVITY EXTENT WORTH

WAGE WAGE
1 ADMINISTRATIVE
10101 Cleaning Manager 8 hours Q 56.00
10102 Driver 8 hours Q 56.00
10103 cook 1 day Q 56.00
10104 Substitute cook 8 hours Q 56.00
2 GENERAL ACTIVITIES
201 Specific jobs
20101 Tractor driver per day 8 hours Q 56.00
20102 tractor driver assistant 8 hours Q 56.00
20103 Mechanic's helper 8 hours Q 56.00
20104 Surveyor's assistant 8 hours Q 56.00
20105 Truck loading and unloading assistant 8 hours Q56.00
202 Cleaning and maintenance activities
20201 General cleaning of the area 1 Rope² Q 56.00
203 Equipment repair and maintenance activities
20302 Equipment repair and maintenance
2030202 mowers 8 hours Q 56.00
2030203 Chainsaws 8 hours Q 56.00
2030204 Fumigation Pumps 8 hours Q 56.00
2030205 Tractor and agroforestry equipment 8 hours Q 56.00
204 Security activities
20401 night guardian 8 hours Q 56.00
20402 Plantation Guardian 8 hours Q56.00
3 ACTIVITIES IN NURSES
301 Nursery supervision
30101 Foreman's assistant 8 hours Q 56.00
30102 Caporal per day 8 hours Q58.00
302 Land preparation
30201 General cleaning of the area 1 Rope² Q 56.00
30202 Land leveling 16 Mts² Q 56.00
30203 Leveling bases for trays 8 hours Q 56.00
30204 Making trunks for bags 8 hours Q 56.00
30206 Construction and maintenance of gutters 35 Mts² Q 56.00
303 Hotbed
30301 Seed treatment 8 hours Q 56.00
30302 seed sowing 8 hours Q 56.00
30303 Seedling hauling 8 hours Q 56.00
30304 Seed beneficiary 3 Sack Q 56.00
30305 Seed plank making 12 Mts² Q 56.00
304 Nursery
30401 Substrate preparation and mixing
3040101 Shoveling and sifting soil 1 Mts³ Q 56.00
3040102 earth hauling 1 Mts³ Q 56.00
3040103 Substrate mix 8 hours Q 56.00
30402 Substrate filling
3040201 Bag filling 638 Bags Q 56.00
3040202 Tray filling 150 Trays Q 56.00
30403 Substrate filling
CODE ACTIVITY EXTENT WORTH
WAGE WAGE
3040301 Bag filling 8 hours Q 56.00
3040302 Tray filling 8 hours Q 56.00

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30404 Disinfection
3040401 Seed disinfection 8 hours Q 56.00
3040402 Disinfection of germinators 8 hours Q 56.00
3040403 Bag disinfection 8 hours Q 56.00
3040404 Tray washing 8 hours Q 56.00
30405 Reconditioning
3040501 Bag Reconditioning 8 hours Q 56.00
3040502 Tray reconditioning 8 hours Q 56.00
30406 Selection
3040601 Plant selection 8 hours Q 56.00
3040602 Tray transfer 8 hours Q 56.00
30407 Transplanting saplings
3040701 Seedling start 8 hours Q 56.00
3040702 Sowing 8 hours Q 56.00
3040703 Reseeding 8 hours Q 56.00
305 Weed control
30501 Round with hoe 225 Mts² Q 56.00
30502 Decluttered 1 Rope² Q 56.00
30503 Weed pulling
3050301 Cleaning of germinators 8 hours Q 56.00
306 Fertilization
30601 Foliar application 8 hours Q 56.00
30602 Soil application
3060201 Application with granular fertilizer 8 hours Q 56.00
3060202 Application with liquid fertilizer 8 hours Q 56.00
307 Preventive control of pests and diseases
30701 Preventive pest and disease control. 8 hours Q 56.00
308 shadow control
30801 Shade production for nursery 8 hours Q 56.00
309 Irrigation
30901 Nursery irrigation 8 hours Q 56.00
310 Fences
31001 Posted 18 Posts Q 56.00
31002 wire laying 1.5 Rolls Q 56.00
31003 Fence repair 8 hours Q 56.00
4 RESEARCH AND DEVELOPMENT ACTIVITIES
401 Investigation and development
40101 Establishment of measurement plots 8 hours Q 56.00
40102 Post 8 hours Q56.00
402 Measurement
40201 Plot measurement 8 hours Q 56.00
40202 Provenance marking 8 hours Q 56.00
40203 Repainting tree numbers 8 hours Q 56.00
40204 Seed tree selection 8 hours Q56.00
40205 Native species count 8 hours Q 56.00
5 ACTIVITIES IN PLANTATIONS
501 Plantation establishment stage
50101 Establishment Supervision
5010101 Caporal per day 8 hours Q58.00
5010102 Foreman's assistant 8 hours Q 56.00
50102 Land preparation
CODE ACTIVITY EXTENT WORTH
WAGE WAGE
5010201 Task measurement 24 Rope² Q 56.00

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5010202 General cleaning of the area 1 Rope² Q 56.00

5010203 Launching of corozos 22 Corozos Q 56.00
5010204 Tree felling 54 Trees Q 56.00
5010205 controlled burning 8 hours Q 56.00
5010206 Stroke for hollowing 8 hours Q 56.00
5010207 Hollowed out 200 Holes Q 56.00
5010208 Drilled for replanting 200 Holes Q 56.00
5010209 Delimitation of ditches 8 hours Q 56.00
50103 Sowing
5010301 Carrying and planting in tray 350 Plants Q 56.00
5010302 Tractor driver in planting and replanting 8 hours Q 56.00
50104 Weed control
5010401 Manual weed control
50104011 Unruly 8 hours Q 56.00
50104012 Clean with a machete 213 Plants Q56.00
5010402 Mechanized weed control
50104021 Clean 400 plants with a machine 460 Plants Q56.00
50104022 Road cleaning with machine 360 Mts Q 56.00
50104023 Clean batch division with machine 840 Mts Q 56.00
5010403 Chemical weed control
50104031 Herbicide supply 8 hours Q 56.00
50104032 Clean strips with Bv herbicide 8 hours Q 56.00
50104033 Gap Herbicide Application 8 hours Q 56.00
50105 Fertilization
5010501 Fertilizer hauling 8 hours Q 56.00
5010502 Fertilization at planting 800 Plants Q 56.00
5010503 Fertilization with granular fertilizer 800 Plants Q 56.00
50106 Pest and disease control
5010601 Gopher control 8 hours Q 56.00
5010602 Zompopo control 8 hours Q 56.00
5010603 Preventive pest control 8 hours Q 56.00
50107 Fire control and surveillance
5010701 First round of firewall 225 Mts² Q 56.00
5010702 Second round of firebreak 325 Mts² Q 56.00
5010703 Control and surveillance 8 hours Q 56.00
50108 Tissue management
5010801 Pruning 8 hours Q 56.00
5010802 unwedding 8 hours Q 56.00
50109 Forestry management
5010901 Tree marking 8 hours Q 56.00
5010902 Chainsaw thinning 8 hours Q 56.00
5010903 Thinning assistant with chainsaw 8 hours Q 56.00
5010904 chainsaw operator 8 hours Q 56.00
5010905 Chainsaw assistant 8 hours Q 56.00
5010906 Installation of tutors and tensioners 8 hours Q 56.00
50110 Soil conservation
5011001 Making living barriers 8 hours Q 56.00
50111 Crew attention
5011101 flanque 8 hours Q 56.00
5011102 Grinder 8 hours Q 56.00
5011103 Galley maintenance crew 8 hours Q 56.00
5011104 I carry groceries for the crew 8 hours Q 56.00
CODE ACTIVITY EXTENT WORTH
WAGE WAGE

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502 Plantation maintenance stage

50201 Maintenance supervision
5020101 Caporal per day 8 hours Q58.00
5020102 Foreman's assistant 8 hours Q 56.00
50202 Weed control
5020201 Manual weed control
50202010 Clean in strips 8 hours Q 56.00
50202011 Unruly 8 hours Q 56.00
50202012 Clean girdles with machete 200 Plants Q 56.00
50202013 Street cleaning with machete 200 Plants Q 56.00
50202014 Furrow gapping 535 Plants Q 56.00
50202015 Silver and shadow 8 hours Q 56.00
50202016 Clean girdles with machete 200 Plants Q 56.00
50202017 Clean lot division with machete 1 Frame Q30.00
50202018 street gap 525 Plants Q 56.00
5020202 Mechanized weed control
50202021 Clean with machine 400 Plants Q 56.00
50202022 Road cleaning with machine 400 meters Q 56.00
50202023 Clean batch division with machine 840 Mts Q 56.00
50202024 Belt cleaning with machine 800 Plants Q 56.00
5020203 Chemical weed control
50202031 Herbicide supply 8 hours Q 56.00
50202032 Clean strips with herbicide 8 hours Q 56.00
50202033 Gap Herbicide Application 8 hours Q 56.00
50203 Fertilization
5020301 Fertilization with granular fertilizer 800 Plants Q 56.00
5020302 Fertilizer hauling 8 hours Q 56.00
5020303 Chicken manure application 500 Plants Q 56.00
5020304 Dolomitic lime application 8 hours Q 56.00
50204 Pest and disease control
5020401 Gopher control 8 hours Q 56.00
5020402 Zompopo control 8 hours Q 56.00
5020403 Preventive pest control 8 hours Q 56.00
50205 Fire control and surveillance
5020501 First round of firewall 225 Mts² Q 56.00
5020502 Second round of firebreak 325 Mts² Q 56.00
5020503 Control and surveillance 8 hours Q 56.00
50206 Tissue management
5020601 Pruning 8 hours Q 56.00
5020602 unwedding 8 hours Q 56.00
50207 Forestry management
5020701 Tree marking 8 hours Q 56.00
5020702 Thinning with chainsaw 8 hours Q 56.00
5020703 Thinning assistant with chainsaw 8 hours Q 56.00
5020704 General chainsaw operator 8 hours Q 56.00
5020705 General chainsaw assistant 8 hours Q 56.00
5020706 Thinning by treatment 64 Trees Q 56.00
50208 Soil conservation
5020801 Making living barriers 8 hours Q 56.00
50209 Crew attention
5020901 flanque 8 hours Q 56.00
5020902 Grinder 8 hours Q 56.00
5020903 Galley maintenance crews 8 hours Q 56.00
CODE ACTIVITY EXTENT WORTH

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Group No. 4. Forestry Business Accounting

WAGE WAGE
5020904 Group hauling groceries 8 hours Q 56.00
503 Harvest Stage
50301 Wood classification
5030101 Chainsaw in classification
503010101 In Sawmill 8 hours Q56.00
503010102 In development poles 8 hours Q 56.00
503010103 In firewood production 8 hours Q 56.00
5030102 Wood classification 8 hours Q 56.00
5030103 Thinning wood cubing 8 hours Q 56.00
5030104 Wood cubing assistant 8 hours Q 56.00
5030105 Wood stowage 8 hours Q 56.00
50302 wood hauling
5030201 Tractor helper for hauling 8 hours Q 56.00
5030202 Firewood hauling 8 hours Q 56.00
5030203 Thinning wood hauling 75 m 30 Piece Q 56.00
5030204 Thinning wood hauling 125m 20 Piece Q 56.00
5030205 Thinning wood hauling 175m 10 Piece Q 56.00
5030206 oxen 8 hours Q 56.00
5030207 Truck hauling assistant 8 hours Q 56.00
50303 Wood debarking
5030701 Debarking of posts 70 Posts Q 56.00
5030702 Debarking of beams 30 Beams Q 56.00
50304 Wood sawing
5034001 Sawmill Helper 8 hours Q 56.00
50305 wood treatment
5030501 Post treatment 8 hours Q 56.00
5030502 Beam treatment 8 hours Q 56.00
50306 wood protection
5030601 Provisional galley preparation 8 hours Q 56.00
50307 Added value of wood
5030701 splitting firewood 25 Bundles Q 56.00
5030702 Charcoal production 8 hours Q 56.00
5030703 Charcoal packaging 40 Bags Q 56.00
5030704 Oven assembly 8 hours Q 56.00
6 ACTIVITIES IN POTREROS
601 Management and care of animals
60101 Livestock manager 8 hours Q58.00
60102 Assistant in charge of livestock 8 hours Q 56.00
602 Paddock maintenance
60201 General cleaning of paddocks 8 hours Q 56.00
7 ACTIVITIES CONSTRUCTION AND INFRASTRUCTURE MAINTENANCE
701 Building maintenance
70101 Construction of facilities
7010101 General construction 8 hours Q 56.00
7010101 General maintenance 8 hours Q 56.00
70102 Maintenance and repair of facilities
7010201 Maintenance and repair of facilities 8 hours Q 56.00
702 Road and bridge maintenance
70201 Roads
7020101 Hauling wood for construction 8 hours Q 56.00
7020102 Clean the shores 2 Rope² Q 56.00
7020104 ditch workmanship 35 meters Q 56.00
7020105 Gap workmanship 450 Mts² Q 56.00

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Group No. 4. Forestry Business Accounting

7020106 ballast irrigation 8 hours Q 56.00

7020108 General road maintenance 8 hours Q56.00
70202 Bridges
7020201 Bridge maintenance and repair 8 hours Q 56.00
703 Fence maintenance
70301 Perimeter gap with machete 450 meters Q 56.00
70302 Hollowed out 90 Holes Q 56.00
70303 Hole digging and planting of posts 28 Posts Q 56.00
70304 Cutting, carrying poles 20 Posts Q 56.00
70305 wire laying 1.5 Rolls Q56.00
70306 Cutting and planting sprout 80 Sprouts Q 56.00
70307 Fence pruning 8 hours Q 56.00
70308 General fence repair 8 hours Q56.00

Note : The structure of the activity catalog should be applied to the farm's cost centers, taking care
to consider the type of activity carried out and the stage of the plantation to which it belongs.

Creation of the daily work report

The daily work report is the central tool of the labor cost structure for a forestry company. It
combines the three catalogs created, the catalog of actors, activities and cost centers.

It consists of a format, which is used by the people who supervise and direct temporary personnel,
known as field foremen.

These people have a minimum level of education, which allows them to read and write, in such a
way that they manage to combine the catalog of workers, the catalog of activities and the catalog of
centers, distributing information generated daily on the farm, in the work report. diary.

The daily work report allows adequate control of the workers who attend the farm, the work they do
and the production they obtain. This will vary according to the way the activity is measured, these
being day, time and production.

An average of two hundred and fifty temporary workers report to the Baltimore farm daily, who are
grouped and assigned a field foreman, who in turn distributes them in the activities they must carry
out that day.

It is estimated that a field foreman can direct and supervise between twenty and twenty-five field
workers, so to cover the total number of workers who attend the farm daily, it is necessary to
employ around ten to twelve foremen.

As the temporary workers finish their activities, the field foreman writes the following information
in the daily work report:

a) Code and name of the center where the activity was carried out.
b) Code and name of the worker who carried it out.
c) Code and name of the activity carried out.
d) The corresponding measurement of the wage can be day, hour or production.
e) Finally, write down the value of the daily wage.

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In addition to the above, the format requires information such as: Name of the property,
name of the foreman in charge, date of the report, correlative report number, signatures of
preparation, review and authorization.

Each foreman is responsible for carrying out the daily work report, for the group assigned
to him. Below is an example of a daily work report: (See Annex 1)

Preparation of the labor cost structure

According to the cost center used

Also contained in the daily work report is the cost center, which is the place where the worker
carried out the activity.

For the distribution of labor according to the cost center, the structure defined in the center catalog
is taken into account, which shows in an orderly and structured manner the different physical
places that make up the Baltimore Estate. It also shows each of the forestry projects, as well as the
subdivisions of each project known as
“Lots”.

The purpose of this structure is to provide the administration with information on the costs
invested, allowing us to know which project has been invested the most and, as a consequence, its
total cost.

This cost structure, like the activity cost structure, serves as a basis for making projections,
determining costs and preparing budgets.

Below is the labor cost structure, according to the workplace or cost center. (See Annex 2)

Accounting and registration of the operations carried out by the forestry company
Madera Para Siempre, SA during the year 2010

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The accounting items for labor and other operations of the company during the period are
recorded below .

Financial state ---Game 01--- Has to To have

E.R. Ordinary salary 228,000.00
E.R. Extraordinary salary 51,300.00
E.R. Bonus decree 78/89 15,000.00
B.G. Labor fee payable 13,490.00
B.G. Cash and banks 280,810.00
P/ Record the payment of salaries of permanent staff
from January to December 2,010 294,300.00 294,300.00

Financial state ---Game 02--- Has to To have

E.R. Compensation 23,266.00
E.R. Bonus 18,992.00
E.R. Bonus 14 18,992.00
E.R. Vacation 11,647.00
E.R. Employer fee 29,801.00
E.R. INTECAP 2,793.00
B.G. Compensation payable 23,266.00
B.G. bonus to pay 18,992.00
B.G. Bonus 14 to pay 18,992.00
B.G. Vacation payable 11,647.00
B.G. Employer fee payable 29,801.00
B.G. INTECAP to pay 2,793.00
P/ Record the provision of labor benefits for staff
permanent from January to December 2010 105,492.00 105,492.00

Financial state ---Game 03--- Has to To have

E.R. Ordinary 4,179,980.00
E.R. Extraordinary 0.00
E.R. Seventh 696,663.00
E.R. Holiday 145,628.00
E.R. Bonus decree 78/89 738,785.00
B.G. Labor fee payable 242,576.00
B.G. Cash and banks
5,518,481.00
P/ Records the payment of salaries of temporary staff
January to December 2010 5,761,057.00 5,761,057.00

Financial state ---Game 04--- Has to To have

E.R. Compensation 418,355.00

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Group No. 4. Forestry Business Accounting

E.R. Bonus 418,355.00

E.R. Bonus 14 418,355.00
E.R. Vacation 209,429.00
E.R. Employer fee 535,876.00
E.R. INTECAP 50,223.00
B.G. Compensation payable 418,355.00
B.G. bonus to pay 418,355.00
B.G. Bonus 14 to pay 418,355.00
B.G. Vacation payable 209,429.00
B.G. Employer fee payable 535,876.00
B.G. INTECAP to pay 50,223.00
P/ Record the provision of labor benefits for staff
temporary from January to December 2010 2,050,593.00 2,050,593.00

Financial state ---Game 05--- Has to To have

E.R. Personal transport 3,526.00
E.R. Viveres 45,699.00
E.R. Attention to temporary staff 85,005.00
B.G. Cash and banks 134,230.00
P/ Record payments for transportation, food and
others, temporary staff from January to December 2010 134,230.00 134,230.00

Financial state ---Game 06--- Has to To have

E.R. Travel expenses 22,375.00
E.R. Attention to permanent staff 61,840.00
B.G. Cash and banks
84,215.00
P/ Record payments for travel expenses and food for the
permanent staff from January to December 2010 84,215.00 84,215.00

Financial state ---Game 07--- Has to To have

E.R. Electric power 23,643.00
E.R. Fuels 176,322.00
E.R. Planting materials 83,890.00
B.G. Cash and banks
283,855.00
P/ Records payments for electricity consumption,
fuels and other plantation accessories from January to December 2010 283,855.00 283,855.00

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Group No. 4. Forestry Business Accounting

Financial state ---Game 08--- Has to To have

E.R. Equipment Repair 29,467.00
E.R. Chainsaw Repair 34,830.00
E.R. Tractor Repair 437,639.00
E.R. Motochapper Repair 25,910.00
E.R. Repair of farm facilities 191,273.00
B.G. Cash and banks
719,119.00
P/ Record payments for repairs to equipment and facilities
of the farm, from January to December 2010 719,119.00 719,119.00

Financial state ---Game 09--- Has to To have

E.R. Fertilizers 97,819.00
E.R. Herbicides 130,868.00
E.R. Insecticides 87,656.00
B.G. Cash and banks
316,344.00
P/ Records payments for agricultural inputs used in January
as of December 2010 316,344.00 316,344.00

Financial state ---Game 10--- Has to To have

E.R. Freight 183,857.00
B.G. Cash and banks
183,857.00
P/ Records freight payments made from the capital city
to Baltimore farm, from January to December 2010 183,857.00
183,857.00

Financial state ---Game 11--- Has to To have

E.R. Roads 702,638.00
B.G. Cash and banks
702,638.00
P/ Records payments for ballast used on roads
access to the farm, from January to December 2010 702,638.00
702,638.00

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Financial state ---Game 12--- Has to To have

B.G. Plantations in process 10,659,299
E.R. Permanent personal ordinary salary 228,000
E.R. Extraordinary permanent personal salary 51,300
E.R. Permanent personal bonus 15,000
E.R. Permanent personal compensation 23,266
E.R. Permanent personal bonus 18,992
E.R. Bonus 14 permanent staff 18,992
E.R. Permanent staff vacation 11,647
E.R. Permanent personal employer contribution
29,801
E.R. INTECAP permanent staff 2,793
E.R. Temporary personal ordinary 4,179,980
E.R. Extraordinary temporary staff -
E.R. 7th temporary staff 696,663
E.R. Temporary personal leave 145,628
E.R. Temporary personal bonus 738,785
E.R. Temporary personal compensation 418,355
E.R. Temporary personal bonus 418,355
E.R. Bonus 14 temporary staff 418,355
E.R. Temporary staff vacation 209,429
E.R. Temporary personal employer contribution
535,876
E.R. INTECAP temporary staff 50,223
E.R. Personal transportation
3,526
E.R. Food 45,699
E.R. Attention to temporary staff 85,005
E.R. Travel expenses
22,375
E.R. Attention to permanent staff 61,840
E.R. Electric power 23,643
E.R. Fuels 176,322
E.R. Planting materials 83,890
E.R. Equipment
29,467
E.R. Chainsaw 34,830
E.R. Tractor 437,639
E.R. mower 25,910
E.R. Farm facilities 191,273
E.R. Fertilizers 97,819
E.R. Herbicides 130,868

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Group No. 4. Forestry Business Accounting

E.R. Insecticides 87,656

E.R. Freight
183,857
E.R. Roads 702,638
E.R. Depreciations 23,600
P/ Record the capitalization of the expenses of the period, to plantations
in process, from January to December 2010 10,659,299 10,659,299

Financial state ---Game 13--- Has to To have

B.G. Cash and banks 8 ,000,000
B.G. Member contributions 8 ,000,000
P/ Record the contributions received from partners for investment
from the period from January to December 2010 8,000,000
8,000,000

Financial state ---Game 14--- Has to To have

B.G. Machinery 11,000.00
B.G. Semovientes 12,600.00
B.G. Accumulated depreciation of machinery
11,000.00
B.G. Accumulated depreciation of assets 12,600.00
P/ Record the depreciation of machinery (Q 55,000 x 20%) and depreciation
livestock (Q 63,000 x 20%), corresponding to the year 2,010 23,600.00 23,600.00

Financial state ---Game 15--- Has to To have

B.G. Employer fee 619,094.00
B.G. Labor quota 256,231.00
B.G. Cash and banks
875,325.00
P/ Record the payments corresponding to employer contributions
and labor during January to December 2010 875,325.00 875,325.00

Financial state ---Game 16--- Has to To have

B.G. Bonus 14 433,156
B.G. Bonus 433,354
B.G. Vacation 429,512
B.G. Cash and banks
1 ,296,022
P/ Record the payments corresponding to bonus 14, bonus
and holidays during January to December 2010 1,296,022 1,296,022

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Financial state ---Game 17--- Has to To have

B.G. Forest plantations 7 ,334,750
B.G. Plantations in process 7 ,334,750
P/ Register the transfer of project I of plantations in process
to plantations fixed assets, on 12/31/10, will be sold in January
2011 as standing timber plantations. 7,334,750 7,334,750

Financial statements
Balance sheet

WOOD FOREVER, S. TO.

BALANCE SHEET
AS OF DECEMBER 31, 2010
FIGURES EXPRESSED IN QUETZALES

Movement of the period

ACCOUNTS 2OO9 HAS TO TO HAVE
2O1O

ASSETS
Non-current assets
Land 7,140,657.00 7,140,657.00
Machinery 140,000.00 140,000.00
Accumulated depreciation of machinery (85,000.00) (11,000.00)
(96,000.00)
Furniture and equipment 70,000.00 70,000.00
Accumulated depreciation of furniture and equipment (70,000.00)
(70,000.00)
Vehicles 50,000.00 50,000.00
Accumulated vehicle depreciation (50,000.00) (50,000.00)
Semovientes 105,000.00 105,000.00
Accumulated depreciation of assets (42,000.00) (12,600.00) (54,600.00)
Subtotal 7,258,657.00 (23,600.00) 7,235,057.00 Forest 13%
plantations 7,334,750.00
t 7,334,750 .00 13% c
Total non-current assets 7,258,657.00 7,334,750.00 ( 23,600.00) 14,569,807.00
Current assets
Plantations in process 35,360,812.00 10,659,299.00 b 7,334,750.00 t 67% c
38,685,361.00 8%
Cash 6,834,616 .00 8,000,000.00 10,394,895.00
4,439,721.00
Total current assets 42,195,428.00 18,659,299.00 17,729,645.00
43,125,082.00 100%
TOTAL ASSETS 49,454,085.00 25,994,049.00 17,706,045.00 57,694,889.00

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Group No. 4. Forestry Business Accounting

PASSIVE
NET WORTH AND LIABILITIES
Net worth
Issued capital 14,000,000.00 24%
14,000,000.00
Accumulated earnings
Total net worth 14,000,000.00 14,000,000.00
Current liabilities
Trade creditors and other accounts payable
Labor Fee 21,491.00 256,231.00 256,066.00
21,326.00
Employer fee 51,926.00 619,094.00 618,693.00
51,526.00
Bonus 14 211,876.00 433,156.00 441,621.00
220,340.00
Bonus 32,729.00 433,354.00 437,348.00 36,723.00
Vacation 21,372 .00 429,512.00 437,348.00 29,208.00
Compensation 3,114,691.00 221,076.00
3,335,767.00
Partner contribution 32,000,000 .00 8,000,000.00
40,000,000.00 76%
Total Liabilities 35,454,085.00 2,171,347.00 10,412,151.00
43,694,889.00
TOTAL NET WORTH AND LIABILITIES 49,454,085.00 2,171,347.00 10,412,151.00 100%
57,694,889.00

Statement of income

WOOD FOREVER, S. TO.

STATEMENT OF INCOME
FROM JANUARY 1 TO DECEMBER 31 OF THE YEAR 2,010
FIGURES EXPRESSED IN QUETZALES

SPENT TOTAL %
PERMANENT STAFF 399,792.00 c 4%
Ordinary salary 228,000.00
Extraordinary salary 51,300.00
Bonus decree 78/89 15,000.00
Compensation 23,266.00
Bonus 18,992.00
Bonus 14 18,992.00
Vacation 11,647.00
Employer fee 29,801.00
INTECAP 2,793.00
TEMPORARY STAFF 7,811,650 .00 73% c
Ordinary 4,179,980.00
Extraordinary -
Seventh 696,663.00
Holiday 145,628.00
Bonus decree 78/89 738,785.00

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Compensation 418,355.00
Bonus 418,355.00
Bonus 14 418,355.00
Vacation 209,429.00
Employer fee 535,876.00
INTECAP 50,223.00
OTHER PERSONNEL EXPENSES 134,230.00 1%
Personal transport 3,526.00
Food 45,699.00
Attention to Temporary Personnel 85,005.00
OTHER FIXED PERSONNEL EXPENSES 84,215.00 1%
Travel expenses 22,375.00
Attention to Permanent Personnel 61,840.00
CONSUMPTION MATERIAL 283,855.00 3%
Electric power 23,643.00
Fuels 176,322.00
Planting Materials 83,890.00
REPAIR AND MAINTENANCE 719,119.00 7%
Equipment 29,467.00
Chainsaw 34,830.00
Tractor 437,639.00
mower 25,910.00
Farm facilities 191,273.00
AGRICULTURAL SUPPLIES 316,344.00 3%
Fertilizers 97,819.00
Herbicides 130,868.00
Insecticides 87,656.00
FREIGHT 183,857.00 2%
Freight 183,857.00
ROADS 702,638.00 7%
Roads 702,638.00
DEPRECIATIONS 23,600.00 0%
Depreciations 23,600.00
TOTAL SPENDS 10,659,299.00 b
In the financial statements presented, of the forestry company Madera Para Siempre, SA, the
following observations are shown:

a) It reflects the transfer of Q. 7,334,750 from plantations in process (Current assets), to

forest plantations (Non-current assets). This is because project I of Finca Baltimore is in
optimal conditions for its exploitation, according to what is specified in the practical case.

There is no depreciation of this asset, because the company sells its forestry projects as
standing timber plantations. Thus transferring the extraction and marketing costs to the
acquiring company.

b) On the balance sheet, there is a value of Q 10,659,299. This figure is the sum of all
expenses incurred during 2010, reflected in the income statement.

All expenses incurred during the period are capitalized to the plantations in process
account (Current Assets) of the balance sheet, that is, all income accounts are transferred
to the balance sheet, so the operation does not generate any result (loss or loss). profit) in
the period.

Within the balance sheet, forest plantations (Non-current assets) represent 13% and
plantations in process 67%, for a total of 80% of total assets.

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c) In the income statement, the labor force of temporary personnel represents 73% and
permanent personnel represents 4%, for a total of 77% of the total invested during the
period.

The above described demonstrates the importance of labor in forestry companies, thus
demonstrating that this is the highest item of investment they make.

FOREST LAW DECREE 101-96

PURPOSE AND GENERAL POLICIES

ARTICLE 1.- Object of the law.

With this law, reforestation and forest conservation is declared of national urgency and social
interest, for which forest development and its sustainable management will be promoted, through
compliance with the following objectives:

a) Reduce the deforestation of forestry lands and the advance of the agricultural frontier,
through increasing the use of land in accordance with its vocation and without omitting the
characteristics of the soil, topography and climate;
b) Promote the reforestation of forest areas currently without forest, to provide the country
with the forest products it requires;
c) Increase the productivity of existing forests, subjecting them to rational and sustained
management according to their biological and economic potential, promoting the use of
industrial systems and equipment that achieve the greatest added value to forest products;
d) Support, promote and incentivize public and private investment in forestry activities to
increase the production, marketing, diversification, industrialization and conservation of
forest resources;
e) Conserve the country's forest ecosystems, through the development of programs and
strategies that promote compliance with the respective legislation; and

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f) Promote the improvement of the standard of living of communities by increasing the

provision of goods and services from the forest to satisfy the needs of firewood, housing,
rural infrastructure and food.

ARTICLE 2.- Application and observance of the Law.

This law is of general observance and its scope of application extends throughout the national
territory, it will include land covered in forest and those designated for forestry, whether or not
they have forest cover.

Lands covered by forests, regardless of their state of growth, development, origin, composition, age
and/or function, nor lands declared as Protected Areas by law, are not considered uncultivated or
idle lands.

ARTICLE 3.- Sustainable use.

The sustainable use of forest resources, including wood, seeds, resins, gums and other non-timber
products, will be granted by concession if they are forests on national, municipal, communal lands
or autonomous or decentralized entities; or by licenses, if it is privately owned land, covered with
forests.

Concessions and licenses for the use of forest resources within protected areas will be granted
exclusively by the National Council of Protected Areas.

OF THE FORESTS

ARTICLE 34.- Prohibitions.

The cutting of trees of those protected and endangered species contained in established national
lists and those established jointly by the INAB and CONAP, and those that in accordance with the
International Conventions that Guatemala has ratified on said matter, is prohibited. as well as
trees that constitute superior genotypes identified by the Institute. The INAB will provide protection
to these species and encourage their conservation and reproduction.

Trees from forests planted and registered with the INAB are excepted from this prohibition.

OF FOREST USE, MANAGEMENT AND INDUSTRIALIZATION

ARTICLE 48.- Sustainable use and management of the forest.

The sustainable use and management of the forest will be directed through the
Management Plan approved by the INAB. This is a fundamental instrument in monitoring the use
and silvicultural techniques applied to the forest mass, it will include at least:

a) Biophysical description of the property;

b) The surface with forest;
c) Forest type and class;

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d) Area to intervene;
e) Protection areas;
f) The volume to be extracted;
g) The cutting system;
h) The annual growth of the forest and its possibility of cutting;
i) The recovery of the forest mass;
j) Prevention measures against forest fires; and,
k) Run time.

In accordance with the regulations of this law, the INAB may determine, under its responsibility,
the conditions of the license for the sustainable management of the forest, within a maximum term
of sixty (60) days, counted from compliance with the requirements established in the regulations of
this law.

ARTICLE 49.- License. (See Annex 3)

The license will be the authorization to implement the Management Plan. Any forestry use of wood
or other woody products, except those for family consumption, voluntary plantations and
voluntarily planted agroforestry systems, may only be carried out with a license that the INAB will
grant within the period indicated in the previous article, this will be exclusively for the owner or
legitimate possessor of the land or forest area in question and it will be under his responsibility and
supervision for the time that, in accordance with the regulations, the Management Plan requires.

Forestry exploitation licenses will be canceled when the obligations contracted before the INAB
are not met, or for any reason stipulated in Title Ninth of this law, or when there is an excess of the
logged volumes.
In the event that the property containing the forest covered by the license is transferred to another
owner, the forestry exploitation license will be transferred to the new owner, who acquires the
rights and obligations of the license.

ARTICLE 53.- License exemptions. (See Annex 4)

The following are exempt from a forestry exploitation license:

a) Clearing, pruning, felling and thinning in the cultivation of coffee, cardamom, cocoa and
other similar agricultural crops;
b) The felling, pruning and thinning of voluntary plantations registered with the INAB;
c) The felling and thinning of fruit tree plantations;
d) Mandatory pruning and thinning of plantations; and,
e) Pruning and thinning of agroforestry systems,

FOREST INDUSTRIALIZATION

ARTICLE 62.- Comprehensive use of the tree.

The INAB will encourage the comprehensive use of the tree, through the promotion of
industrialization systems and equipment that achieve the greatest added value to forest products .
ARTICLE 63.- Inspection in sawmills and customs.

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The INAB will supervise the country's sawmills and customs, in order to quantify, qualify and verify
the legal origin of forest products, according to the procedures established by the regulations of
this law.

ARTICLE 64.- Access to Primary Transformation Forest Industries.

Authorized INAB personnel, upon identification, will have access to the facilities of the country's
forest industries.

These industries have the obligation to keep records of the volume of logs purchased or felled and
the volume of sawn wood that they yield. (Logs yield 45%, for plank or flitch wood the INAB
carries out a study to authorize the yield depending on the type of saw used)

The total volume of wood to be sold will be equivalent to the volume of authorized logs, less waste
caused by processing. (The sawmills submit a monthly or quarterly report to the INAB on the
income and expenditure of wood, as well as the processing of logs) (See Annex 5)

ARTICLE 65.- Export prohibitions and exemptions.

The export of round or carved logs and sawn wood measuring more than eleven centimeters thick is
prohibited, regardless of its length or width.

The following are exempt from this prohibition:

a) Pressure impregnated posts, piles, sleepers and blocks;
b) Products from duly registered plantations, including voluntary agroforestry plantations;
c) Products from planted forests registered with the INAB, with the corresponding certificate;
d) Parts of furniture and wooden pieces that have added value.

ARTICLE 88.- National Forest Registry. (See Annex 6)

With the purpose of censusing the lands covered with forests and forestry vocation, as well as to
exercise statistical control of the technical and economic activities on the matter, the National
Forest Registry is created by the INAB, in which they will be registered ex officio. or at the request
of a party, as the case may be:

a) All forests and lands with a forestry vocation, regardless of their ownership regime, with
detailed expression of the existing forests and the registration data of the land ownership
and tax registration.

b) Urban and rural sawmills, manual or mechanical, resin distillers, impregnators, pulp and
paper processors, carpentry shops, factories of semi-finished or fully processed products
and other similar industries that use forest products as raw materials;
c) People who are dedicated to reforestation;

d) People who carry out export or import activities of forest products, regardless of their
status;

e) People who are dedicated to the production of resins, latex and other forest products;

f) Forest nurseries throughout the country;

g) Forest seed producers and exporters;

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h) The professionals and technicians who act as Forest Regents indicated in article 50 of this
law; and,

i) Institutions, organizations and associations related to research, extension and training in

the forestry and/or agroforestry area.

The corresponding registration certificate will be issued free of charge to the individuals or legal
entities included in this article, who in any case are obliged to provide the information that is
required.

ARTICLE 92.- Crime against forest resources.

Whoever, without the corresponding license, fells, harvests or extracts trees whose total standing
wood exceeds ten (10) cubic meters, of any forest species with the exception of the species referred
to in article 99 of this law, or proceeds with their barking, ocoteo , ringing commits a crime against
forest resources. Those responsible for the actions contained in this article will be sanctioned as
follows:

a) From five point one (5.1) cubic meters to one hundred (100) cubic meters, with a fine
equivalent to the value of the wood according to the appraisal carried out by the INAB.

b) From one hundred point one (100.1) cubic meters onwards, with imprisonment of one to
five (1 to 5) years and a fine equivalent to the value of the wood, according to the appraisal
carried out by the INAB.

ARTICLE 99.- Felling of trees of protected species.

Whoever fells, takes advantage of, debarks, ocotare, rings or cuts the crown of trees of protected
and endangered species, contained in the international conventions to which Guatemala is a party
and that are found in the legally approved national lists, will be sanctioned by the Following way:

a) From one to five hundred cubic meters of standing wood, (1 to 500), with a fine of four
hundred to ten thousand quetzales (Q.400.00 to Q.10,000.00).
b) From five hundred and one cubic meters (501 and -), of standing wood and above, with
imprisonment of one to five (1 to 5) uncommutable years and a fine of ten thousand to fifty
thousand quetzales (Q.10,000.00 to Q.50,000). .00).

Trees established by artificial regeneration are excepted.

WOOD INDUSTRIES (SAWWILLS)

The simplest way to industrialize wood from logs is to saw them using a wide variety of machines
and tools that can range from manual to highly automated sawmills, capable of producing 250 m3
of sawn wood in a working section.

The possible evaluation of the sawmill industries is subject to the interaction of a number of
variables , to which new factors are constantly added that can considerably modify the initial
operations .

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The development of this sector is directly influenced by the raw material , by the evaluation of the
demand for the products and the willingness to absorb technical changes, and the effects of man on
the environment will also have a decisive influence.

MAIN WOOD SPECIES MARKETED:

MAHOGANY (Protected Species for export requires a Cites Certificate issued by Conap)
CEDAR (Protected Species for export requires a Cites Certificate issued by Conap)
WHITE PALO (Mainly used for making furniture)
PINE (It is one of the most common woods)
TREATED PINE (Used for exterior work, it has up to 100 life)

SOME WOOD BYPRODUCTS:

VENEER (Baked Wood Sheets in Slicer)

DOOR COMPONENTS (Standards, Headboards, Peinazos, Frames)
DOORS
STEPS
PIECES
MDF BOARDS
PHENOLIC PINE PLYWOOD
CHIPBOARDS
VENEER BOARDS (MDF or Chipboard Covered Boards covered with Sheets of Veneer)
SAWDRIN (It is taken out by the wood after being sawn)

ACCOUNTING IN A SAWMILL

It indicates that "the accounting system includes the design and implementation of a series of
policies, manuals, records and documents, which will allow there to be adequate control over the
financial operations of the sawmill, also that the financial information produced is reliable, since
that this will serve the administration to study the cost-benefit-production volume relationships, the
degree of efficiency and productivity, production planning and control, sales prices and capital
policy.

Lumber is sold by the board foot or cubic meter either in planks or sawn lumber (boards), each
cubic meter is equivalent to 424 feet of board lumber.
The way the wood is cubed is as follows:

(Thickness (inches) * Width (Inches) * Length (Feet) / 12 = Total Feet that a wooden board has.

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Main Accounting Records:

Wood Purchase:
Purchase of Log Wood , the log is cubed and its value is quantified by the number of feet each one
contains.

----- GAME XXX------ HAS TO TO HAVE

11401 Log Wood
1140101 Log Cedar XXXXX
1140102 Mahogany log XXXXX
1140103 Banak in Troza XXXXX
1140104 Cedrillo in Log XXXXX
1140105 Log Pine XXXXX
11201 Accounts Receivable
1120101 VAT Receivable XXXXX
11101 Cash and Banks
1110102 Banrural Bank XXXXX
21103 Accounts payable
2110302 Wood Suppliers XXXXX

The yield percentage of logs to sawn wood is 45%

Record of transformation of logs into sawn wood. Sawn wood is loaded and log wood is paid to
regularize it.

----- GAME XXX------ HAS TO TO HAVE

11403 Sawn timber
1140301 Sawn Cedar XXXXX
1140302 Sawn Mahogany XXXXX
1140303 Banak Sawn XXXXX
1140304 Sawn Cedrillo XXXXX
1140305 Sawn Pine XXXXX
11401 Log Wood
1140101 Log Cedar XXXXX
1140102 Mahogany log XXXXX

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1140103 Banak in Troza XXXXX

1140104 Cedrillo in Log XXXXX
1140105 Log Pine XXXXX

Purchase of Planked Wood, the log is cubed and its value is quantified by the number of feet each
one contains.

----- GAME XXX------ HAS TO TO HAVE

11402 Wood on Plank
1140201 Cedar on Plank XXXXX
1140202 Mahogany on Plank XXXXX
1140203 Banak on Plank XXXXX
1140204 Cedrillo on Plank XXXXX
1140205 Pine on Plank XXXXX
11201 Accounts Receivable
1120101 VAT Receivable XXXXX
11101 Cash and Banks
1110102 Banrural Bank XXXXX
21103 Accounts payable
2110302 Wood Suppliers XXXXX

The percentage of yield from planks to sawn wood is established by the INAB through a study on
the type of saw used.

Record of transformation from planks to sawn wood. Sawn wood is loaded and plank wood is paid
to regularize it.

----- GAME XXX------ HAS TO TO HAVE

11403 Sawn timber
1140301 Sawn Cedar XXXXX
1140302 Sawn Mahogany XXXXX
1140303 Banak Sawn XXXXX
1140304 Sawn Cedrillo XXXXX
1140305 Sawn Pine XXXXX
11402 Wood on Plank
1140201 Cedar on Plank XXXXX
1140202 Mahogany on Plank XXXXX

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1140203 Banak on Plank XXXXX

1140204 Cedrillo on Plank XXXXX
1140205 Pine on Plank XXXXX

Purchase of Sawn Lumber, purchased in feet, recorded in feet.

----- GAME XXX------ HAS TO TO HAVE

11403 Sawn timber
1140301 Sawn Cedar XXXXX
1140302 Sawn Mahogany XXXXX
1140303 Banak Sawn XXXXX
1140304 Sawn Cedrillo XXXXX
1140305 Sawn Pine XXXXX
11201 Accounts Receivable
1120101 VAT Receivable XXXXX
11101 Cash and Banks
1110102 Banrural Bank XXXXX
21103 Accounts payable
2110302 Wood Suppliers XXXXX

Transformation of Raw Material to Byproducts:

----- GAME XXX------ HAS TO TO HAVE

11404 Lock
1140401 Cedar Veneer XXXXX
1140402 Mahogany Veneer XXXXX
1140403 Banak Sheet XXXXX
1140404 Cedrillo Veneer XXXXX
11405 Components
1140501 Cedar Components XXXXX
1140502 Mahogany Components XXXXX
1140503 Banak Components XXXXX
1140504 Cedrillo Components XXXXX
11403 Sawn timber
1140301 Sawn Cedar XXXXX
1140302 Sawn Mahogany XXXXX
1140303 Banak Sawn XXXXX

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1140304 Sawn Cedrillo XXXXX

Costs and Expenses (Some below)

----- GAME XXX------ HAS TO TO HAVE

61101 Administration Expenses
6110101 Administration Salaries XXXXX
6110102 Bonus Decree XXXXX
6110103 Employer Fee XXXXX
6110104 Employment benefits XXXXX
6110105 Telephone service XXXXX
6110106 Electric power XXXXX
61102 Operating costs
6110201 Operation Salaries XXXXX
6110202 Bonus Decree XXXXX
6110203 Employer Fee XXXXX
6110204 Employment benefits XXXXX
6110205 Fuel Machinery XXXXX
6110206 Machinery maintenance XXXXX
6110207 Stickers XXXXX
6110208 Packing material XXXXX
6110209 Electric power XXXXX
61103 Selling expenses
6110301 Administration Salaries XXXXX
6110302 Bonus Decree XXXXX
6110303 Employer Fee XXXXX
6110304 Employment benefits XXXXX
6110305 Telephone service XXXXX
6110306 Travel expenses XXXXX
6110307 Commissions on sales XXXXX
6110308 Advertising XXXXX
6110309 Fuels XXXXX
6110310 Vehicle Maintenance XXXXX
11201 Accounts Receivable
1120101 VAT Receivable XXXXX
11101 Cash and Banks
1110102 Banrural Bank XXXXX

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21103 Accounts payable

2110303 Other accounts payable XXXXX
2110304 Labor Fee Payable XXXXX
2110305 Employer Fee Payable XXXXX
2110306 Labor Benefits Payable XXXXX

Sale of Wood and Byproducts:

----- GAME XXX------ HAS TO TO HAVE

11101 Cash and Banks
1110102 Banrural Bank XXXXX
51103 Sawn Lumber Sales
5110301 Sawn Cedar XXXXX
5110302 Sawn Mahogany XXXXX
5110303 Banak Sawn XXXXX
5110304 Sawn Cedrillo XXXXX
5110305 Sawn Pine XXXXX
51104 Sheet Metal Sales
5110401 Cedar Veneer XXXXX
5110402 Mahogany Veneer XXXXX
5110403 Banak Sheet XXXXX
5110404 Cedrillo Veneer XXXXX
51105 Component Sales
5110501 Cedar Components XXXXX
5110502 Mahogany Components XXXXX
5110503 Banak Components XXXXX
21103 Accounts payable
2110301 VAT payable XXXXX

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Group No. 4. Forestry Business Accounting

Cost of Sales of Wood and Byproducts:

----- GAME XXX------ HAS TO TO HAVE

51203 Cost of Sales of Sawn Lumber
5120301 Sawn Cedar XXXXX
5120302 Sawn Mahogany XXXXX
5120303 Banak Sawn XXXXX
5120304 Sawn Cedrillo XXXXX
5120305 Sawn Pine XXXXX
51204 Sheet Metal Sales Cost
5120401 Cedar Veneer XXXXX
5120402 Mahogany Veneer XXXXX
5120403 Banak Sheet XXXXX
5120404 Cedrillo Veneer XXXXX
51205 Component Sales Cost
5120501 Cedar Components XXXXX
5120502 Mahogany Components XXXXX
5120503 Banak Components XXXXX
5120504 Cedrillo Components XXXXX
11403 Sawn timber
1140301 Sawn Cedar XXXXX
1140302 Sawn Mahogany XXXXX
1140303 Banak Sawn XXXXX
1140304 Sawn Cedrillo XXXXX
1140305 Sawn Pine XXXXX
11404 Lock
1140401 Cedar Veneer XXXXX
1140402 Mahogany Veneer XXXXX
1140403 Banak Sheet XXXXX
1140404 Cedrillo Veneer XXXXX
11405 Components
1140501 Cedar Components XXXXX
1140502 Mahogany Components XXXXX
1140503 Banak Components XXXXX
1140504 Cedrillo Components XXXXX

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MAYA SAWWARD, S. TO.

STATEMENT OF INCOME
FROM JANUARY 1 TO DECEMBER 31 OF THE YEAR 2,010
FIGURES EXPRESSED IN QUETZALES

Income XXXXX
51103 Sawn Lumber Sales XXXXX
51104 Sheet Metal Sales XXXXX
51105 Component Sales XXXXX
(-) Sales cost XXXXX
51203 Cost of Sales of Sawn Lumber XXXXX
51204 Sheet Metal Sales Cost XXXXX
51205 Component Sales Cost XXXXX .
Sales Profit XXXXX

(-) Operating costs XXXXX

61101 Administration Expenses XXXXX
6110101 Administration Salaries XXXXX
6110102 Bonus Decree XXXXX
6110103 Employer Fee XXXXX
6110104 Employment benefits XXXXX
6110105 Telephone service XXXXX
6110106 Electric power XXXXX
61102 Operating costs XXXXX
6110201 Operation Salaries XXXXX
6110202 Bonus Decree XXXXX
6110203 Employer Fee XXXXX
6110204 Employment benefits XXXXX
6110205 Fuel Machinery XXXXX
6110206 Machinery maintenance XXXXX
6110207 Stickers XXXXX
6110208 Packing material XXXXX
6110209 Electric power XXXXX
61103 Selling expenses XXXXX

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6110301 Administration Salaries XXXXX

6110302 Bonus Decree XXXXX
6110303 Employer Fee XXXXX
6110304 Employment benefits XXXXX
6110305 Telephone service XXXXX
6110306 Travel expenses XXXXX
6110307 Commissions on sales XXXXX
6110308 Advertising XXXXX
6110309 Fuels XXXXX
6110310 Vehicle Maintenance XXXXX .
Operating Profit XXXXX
(+/-) Other Expenses and Products XXXXX
Profit before Tax XXXXX

MAYA SAWWARD, S. TO.

BALANCE SHEET
AS OF DECEMBER 31, 2010
FIGURES EXPRESSED IN QUETZALES

ASSET
Current XXXXX
11101 Cash and Banks XXXXX
11201 Accounts Receivable XXXXX
11401 Log Wood XXXXX
11402 Wood on Plank XXXXX
11403 Sawn timber XXXXX
11404 Lock XXXXX
11405 Components XXXXX

Not Current XXXXX

12101 Machinery XXXXX
12102 Vehicles XXXXX
12103 Furniture and Equipment XXXXX
12104 Computer equipment XXXXX .
TOTAL ASSETS XXXXX

PASSIVE AND HERITAGE

Current Passive XXXXX
21103 Accounts payable XXXXX

Heritage XXXXX
31101 Authorized capital XXXXX
31102 Utilities XXXXX .
TOTAL LIABILITIES AND EQUITY XXXXX

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CONCLUSIONS

1) Forestry activity in Guatemala has gained relevance in recent years; it is

considered an extremely profitable activity by national and foreign companies. For
its part, the State of Guatemala invests large sums of money through the INAB, with
the purpose of promoting and conserving the environment.

2) For the forestry company, the recovery of the invested capital and the expected
profit is carried out in a period between twelve to twenty years, depending on the
type of plantation. During this total time of the investment made by the forestry
company, 70% is invested in labor, due to the extensions of land that the farms
occupy and the number of workers required to carry out this activity.

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RECOMMENDATIONS

1) To invest in forestry activity, it is necessary to have adequate advice and knowledge

of this subject, in addition to having the economic resources for the development of
the plantations, for the period in which it is estimated, the plantation is in optimal
conditions for its sale or exploitation.

2) To obtain truthful, timely and reliable information on what is invested in forestry

projects, it is necessary to implement the Labor Cost Structure, which provides
information on the costs invested to the administration, which must be considered
for the sale of each project or for future investments.

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BIBLIOGRAPHY

http://biblioteca.usac.edu.gt/tesis/03/03_3757.pdf
THESIS STRUCTURE OF LABOR COST FOR A FORESTRY COMPANY IN GUATEMALA
BY MARCO MANOLO GÓMEZ MONTENEGRO

FOREST LAW DECRETI 101-96

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