This article tries to establish the importance of the economic entity both for the environment in which it is managed and for the accounting system.
Introduction:
The entity principle plays an important role within the accounting system since it is who establishes the kind of information required within a given environment, and also contributes to its not only economic but also social development.
Accounting entity
It is necessary to clarify the concept of economic entity as defined by Hendriksen "as the economic unit that has control over resources, accepts the responsibilities of contracting and fulfilling commitments and carries out an economic activity." (Hendriksen, 1974, p. 115).
Within the accounting system, the entity is of paramount importance since it defines what is necessary and pertinent within the accounting information for the actors that intervene in its environment.
It is true that throughout history the concept of accounting has evolved and new concepts have been created not only in the way in which reports should be presented to each of the users but also the information that they should present depending on Who is directed, how convenient is this? We cannot elucidate it today, but it is a reality that is being presented.
Linked to this evolution, we see the theory day by day and with it the practice is changing and that is that in the beginning the auditor was only in charge of monitoring managerial behavior, today his field of action has extended further to reach the social.
Returning to the issue of accounting information, we can see how over time it becomes more important, not only for the company but also for those users of such information. All this leads accountants to better prepare themselves to ensure that the information presented is real, clear and timely information, because if it is presented at the right time, the necessary corrections can be taken and in this way, avoid mistakes and avoid problems. not only for owners and employees but also for people who in one way or another depend on this economic entity.
Accounting has evolved to such an extent that at this moment we can already talk about Environmental and Forensic Accounting because it occurs because the environment is changing and it requires an approach that allows the accounting scheme to move towards an insufficiency that the current economic environment presents. and that affects all those accounting entities that are within it.
It is necessary to establish that the economic entity must fulfill a social function within the space that it develops, the responsibility that falls on the company must not be only to acquire profit, there must be a commitment with the entire community so that the economy grows and favors those who are in the exchange.
Today the company is obliged to present three essential characteristics: coalition of interests, financial capitalism and social responsibility, thus seeking to satisfy the economic and social needs of the company and its beneficiaries.
Obviously in Colombia the concept of accounting entity is still taken from a capitalist point of view, since priority is still given to the benefit obtained by the entity for those individuals who have participation within it (partners, shareholders, associates), it is pertinent that said Entities are interested in the environment in which they operate, thus seeking social welfare that drives the development of the entire country.
Conclusions
The accounting entity is fundamental to the accounting system and global economic development.
Accounting evolves in great steps, given the need that arises from day to day both in the accounting entity and in the environment in which it operates.
The current accounting entity should focus not only on the economic part but also on the social part.
Bibliography
Caravalho Betancur, Javier Alonso; Cardona Arteaga John. Harmonization of Financial Accounting: Comparison of models. In: Accounting Magazine of the University of Antioquia, No. 43, July - December 2003, p. 17 - 64.
Hendriksen, Eldon S. Accounting Theory. Mexico DF: Hispano - Americana Editorial, May 1974.
Rueda Delgado, Gabriel. Alternative Development and Accounting: an approximation. In: Magazine Legis del Contador, No. 6, January - March 2002, p. 97 - 100.
Tua Pereda, Jorge. Theory readings and accounting illustration. Medellín: Inter-American Legal - Financial Center, Ediciones Gráficas, 1995.
Tua Pereda, Jorge. Accounting Principles and Standards, Madrid: ICE, 1984.
Viegas, Juan Carlos. The start-up principle and its relation to the business crisis. In: Magazine Legis del Contador, No. 11, July - September 2002, p. 107 - 127.
Tua Pereda, Jorge. Accounting principles and standards. Madrid: CIE, 1983, p. 665.
