Provisions related to the preparation and presentation of the statement of changes in the financial situation expressed in pesos of purchasing power at the balance sheet date.
The objective is to provide relevant and concentrated information in a period, so that the users of the financial statements have sufficient elements to:
- a) Evaluate the capacity of the company to generate resources b) Evaluate the reasons for the differences between the net profit and the resources generated or used by the operation c) Evaluate the capacities of the company to fulfill its obligations, to pay dividends, and if applicable, to anticipate the need to obtain financing. d) Evaluate the changes experienced in the financial situation of the company derived from investment and financing transactions that occurred during the period.
The basic financial statement shows (in pesos) the resources generated or used in the operation, the main changes that occurred in the entity's financial structure and its final reflection in cash and temporary investments over a given period.
The expression "constant pesos" represents pesos of purchasing power at the balance sheet date (last reported year of comparative financial statements).
The generation or use of resources is the change in constant pesos in the different items of the balance sheet, which are derived or affect the cash.
In the case of monetary items, this change includes the variation in nominal pesos, more or less its monetary effect.
Financing activities include obtaining resources from shareholders and the reimbursement or payment of benefits derived from their investment, payment of resources obtained through short and long-term operations.
Investment activities include the granting and collection of loans, the purchase and sale of debts, instruments, capital, real estate, equipment, machinery, and other productive assets other than those that are considered as inventories of the company.
Operating activities are generally related to the production and distribution of goods and the provision of services, to transactions and other events that have effects in determining net income and / or to those activities that result in movements of the balances of accounts directly related to the operation of the entity and that are not framed in financing or investment activities.
The set of changes in the financial situation show the change registered, in pesos, in each of the main items that comprise it, which, together with the result for the period, determine the change in the entity's resources during a period.
In this statement, the net result of management is related to the change in the financial structure and the reflection of all this in the increase or decrease in cash and temporary investments during the period.
Within the set of activities carried out by companies, it has become more evident that resources are generated and / or used in three main areas:
- a) Within the course of its operations b) As a consequence of the financing obtained and the real amortization thereof, in the short and long term c) Depending on investments and / or dives carried out.
Consequently, the resources generated or used during the period should be classified for the purposes of this statement in:
- a) operation b) financing c) investment.
The resources generated or used by the operation result from adding or decreasing to the net result for the period (or before extraordinary items), the following concepts:
- a) Items in the income statement that have not generated or required the use of resources or whose net result is linked to activities identified as financing or investment. Movements in current asset devaluation estimates will not be considered in this reconciliation. B) Increases or decreases (in constant pesos) in the different items directly related to the operation of the entity, decreased from the corresponding valuation estimates.
The resources generated or used in financing activities mainly comprise:
- a) Credits received in the short and long term, different from the operations with suppliers and / or creditors related to the operation of the company b) Amortizations made to these credits, not including the relative interests c) Capital increases for additional resources, including the capitalization of liabilities. d) Capital repayments. e) Dividends paid. Except share dividends.
The resources generated used in investment activities basically comprise the following transactions:
- a) Acquisition, construction and sale of real estate, machinery and equipment, b) Acquisition of shares of other companies on a permanent basis c) Any other investment or permanent investment d) Loans made by the company e) Collections or decrease in pesos constants of credits granted (not including relative interests).
The classification followed must be the one that best reflects the essence of the operation, based on the most relevant economic activity of the company.
Mechanism for its elaboration
It is based on the net profit or loss, or before extraordinary items, or the resources generated or used in the operation will be presented before and after extraordinary items.
Changes in the financial situation are determined by differences between the different items of the initial and final balance sheets, expressed in pesos of purchasing power at the date of the most recent balance sheet, classified in the three groups mentioned above, the important variations that arise must be analyzed. in the interim periods, the transfers will offset each other, omitting their presentation in the statement of changes in the financial situation, if the transfer involves a change in the financial structure, the two movements must be presented separately, updating some lines of statements Financial statements must be eliminated from the final balance of the item that gave rise to it and from the corresponding stockholders' equity, before making comparisons.
The monetary effect and exchange fluctuations modify the purchasing power of companies, therefore, they should not be considered as virtual items that did not have an impact on the generation or use of resources.
The statements of previous periods that are included to be compared must be presented in accordance, it should be revealed that the statement of changes in the financial situation was prepared considering, as resources generated, the change in pesos of the different items on the balance sheet.
When the financial information is presented in nominal pesos (low inflation), the change in the monetary items of the balance sheet is equivalent to the cash flow generated or invested in said items, however when inflation is significant and requires the expression of the financial statements In pesos of the same purchasing power, the change in constant pesos of the monetary items of the balance sheet involves, in addition to the cash flow, the erosion or benefit that inflation (monetary effect) caused in the effect generated or invested in said items. The change in monetary items goes from representing a cash flow to the generation or use of resources in pesos.
