The assets that the company owns symbolize the resources that the owners have for the development of the productive activity of the entity and as a result of the daily operations that in the future will bring them economic benefits.
All the resources of the company must reasonably represent the financial situation of the economic entity in a given period, an explanation of each of the components of this item is presented below.
Available:
These include the immediate, total or partial liquidity resources that the company has and that are for general purposes of payments in the short term, including cash, banks, funds in savings corporations, remittances in transit and funds in general.
Investments:
These represent all securities such as shares, quotas or parts of social interest, commercial papers or any other negotiable document acquired by the economic entity on a temporary or permanent basis, in order to maintain a secondary liquidity reserve, establish economic relations with other entities or to comply with legal provisions.
When the investments are easily disposed of, that is, they are to be converted into cash in less than a year, they are considered temporary, the rest are called permanent.
The historical value of the investments must be adjusted at the end of the accounting period, to the realization value, to create the respective provision or valuation.
When the company has investments in another entity that is its subordinate and for which profits are transferred, it must be accounted for by the "equity method", except when they are temporary.
Accounts receivable:
Accounts and documents receivable represent all rights to claim cash or other goods and services, as a result of loans and other credit operations, including commercial and non-commercial.
At the end of the period of operations, the recoverability of this item should be evaluated, recognizing contingencies of the loss of its value.
Inventories:
Inventories are all those tangible assets destined for sale in the normal course of business, as well as those that are in the process of production or that will be used in the production of others that will be sold. The value of inventories must be determined using any of the methods accepted by the legislation of each country, among the best known are:
- LIFO or UEPS (Last in, First out) FIFO or PEPS (First in, First out) Weighted average Others of recognized technical value
Adjustment to assets
At the end of the accounting period, the value of the monetary correction on non-monetary assets must be recognized.
The systems for inventory valuation are:
- Permanent Newspaper
Assets represent the tangible and intangible property and rights of the company, which, to the extent of their use, are a potential source of future benefits.
Property, plant and equipment:
Property, plant and equipment symbolizes all tangible assets acquired, built or under construction, with the intention of using them permanently, for the production or supply of other goods and services, for leasing, or for use in administration, they are not intended for sale and whose useful life exceeds the year of use.
The historical value of these assets includes all the expenditures and charges necessary to place them in conditions of use, such as engineering, supervision, taxes, monetary correction and all those that are likely to change the final value of the asset. You must also add the value of improvements, additions and repairs that increase the useful life or quality of production.
Comment: Useful life is the period during which the equipment and properties are expected to contribute to income generation.
The contribution of these assets to the generation of income should be recognized in the results of the year by depreciating their adjusted historical value. The depreciations of the properties must be calculated excluding the cost of the respective land. Depreciation must be determined by one of these methods:
- Straight line Sum of digits Production units Hours of work Others of recognized technical value
At the end of the accounting period, the net value of the assets, restated as a consequence of inflation, must be adjusted to the realization value, recording the provisions or valuations that are necessary.
Exhaustable assets:
These assets represent the natural resources owned by the company. Its quantity decreases according to the duration of its exploitation.
The historical value is made up of the acquisition value, plus all the expenses included in the exploration and all the items that increase their value. Faced with the generation of income, it must be recognized by means of its " Exhaustion " calculated in the reserves held by the studies in terms for the recovery of the investment.
Intangible assets:
Intangible assets are the resources obtained by an economic entity that, lacking a material nature, give an opposable right to third parties, which offers a benefit in subsequent periods. These include patents, trademarks, franchises, copyrights and goods delivered in commercial trust.
The historical value of these assets is determined by all the expenditures made to produce, acquire or form them. They are exposed to exposure to inflation. At the end of the period, loss contingencies must be recognized, adjusting or accelerating their amortization.
Deferred assets:
They are all the resources that are paid to obtain a future benefit, among which are the anticipated expenses, such as interest, insurance, leases, the deferred charges that represent goods or services received from which economic benefits are expected to be obtained in other periods.
The historical value of these assets must be systematically amortized during the estimated period for their recovery. Amortization of deferred assets must be recognized from the date that income originates, taking into account that those corresponding to organization, pre-operations and start-up must be amortized in the shortest time between the estimate and the duration of the project.
