Accounting policies for 21st century companies // IAS 8

in #economy6 years ago

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Currently the economic situation of any company is involved in the constant evolution, since the globalization that exists in the world economies introduces every company to these changes. Generating with it that the accounting situation requires adjustments to be on par with the financial market in which you want to compete. Giving rise to transformations in the organization and collection of information, specifically that which involves the records of the accounting process; which must follow a logical continuity of related steps, to effectively fulfill their purpose.

All these procedures must be adapted by the companies since the beginning of the financial activities, since they will allow a precise understanding of each analysis of the commercial transactions that are executed, resulting in the sequence of the relationship of those responsible for compliance with procedures and as well as the policies and norms established for its realization. That is, the techniques, which allow developing and detailing the financial operations that affect the assets of a company, since information will be useful in making decisions.

Therefore, each company requires a detailed record of the financial movements that are made, but as it is not a secret every company is a completely different financial world and nowadays it is necessary to compare the financial information if you want competitiveness in the market; due to this, it is necessary the precise implementation of "universal" accounting policies that give a beginning of what have been the procedures applied to settle the mercantile transactions; These policies are guidelines proposed by international accounting standards (NIC), specifically NIC 8. This NIC provides the guidelines for the preparation, modification of accounting information, as well as, the most relevant data in the financial statements.

In such a way, that each of the accounting records be understood, since they would be based on a standard or interpretation, in order to respond in the most rapid and efficient way to the different information needs of the transactions that may originate , and that make accounting and financial information an effective and efficient tool.

Unlike accounting principles, which must be applied in a general manner, accounting policies are formulated to meet the needs of a particular entity, that is, each one must elaborate according to its operational and functional characteristics. A fundamental aspect to be considered in the formulation of accounting policies is that they must be prepared in such a way that they comply with the requirements or guidelines established in the reference framework adopted by the entity, which has a significant impact on the level of reliability it has. the financial information presented. In addition, the accounting policies seek to meet certain objectives, such as guaranteeing the guidelines established in the accounting technical reference framework, establishing criteria in conjunction with the uniformity of accounting information.

Likewise, for the establishment of accounting policies, certain characteristics must be met that allow their application to be carried out efficiently in the company; Within the characteristics we have the compressibility, flexibility (adapting to changes in the economic nature of financial transactions), reliability (giving confidence that the information reflected will be without any error or omission), consistency, uniformity and relevance (since, for be useful to be useful, allow comparison with past, present or future information, or confirm or correct previous assessments).

However, for the preparation of accounting policies, management must conduct a study and analysis of all aspects and accounting transactions generated in the company. Likewise, it must perform an evaluation of all the most important administrative systems and processes of the operation and operation of the same with the purpose of processing-unifying said information and projecting it towards the accounting bases that the company will apply.

When companies evaluate the activities they carry out, they identify the economic events that represent the basis of them, the main purpose for which they were created, the market to which they dedicate their operations. Another relevant aspect is to take into account the nature of society, from a legal point of view, evaluating itself, which may be subject to specific regulations in the country if its particular activity requires it, as is the case of banks, autonomous organizations or governmental entities as well as financial entities which are regulated by the superintendence of the financial system

Author @keniacarolina

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