The changes that have been experienced in the economy and accounting, giving rise to the information needs, are appreciable, carrying out an in-depth study on the improvement of the accounting system in order to know the real situation in which the economic entity finds itself. Without forgetting that everything is evolving and that technology is taking over the business world, therefore there must be progress in line with the evolution, characteristics and features of the environment in which it operates.
1. Introduction
Due to globalization the economy is growing by leaps and bounds, for this reason accounting is in a process of change with the emergence of new information needs to be used by different users that are interrelated in the business environment.
Competitiveness plays an important role in the world economy, since it has forced companies to implement a harmonious accounting system that contributes to the growth of both the company and the market, and thus achieve a better level, to meet the needs of the environment that demands quality and trust.
People outside the company began to find in the accounting information, a fundamental tool that would help them make their own decisions, for this reason the users of the information have increased in an economic entity, since previously only one user was known who It was the owner and today there are multiple users such as the state, investors, clients, control entities, collaborators, the general public, among others.
Taking into account the different users, interesting discussions have been raised in the presentation of the information, since two variables arise: providing specific or general information, in other words, making known information that interests each user exclusively or delivering reports that cover the interests of all users.
2. Accounting information system (SIC)
An information system is a set of interrelated elements that collects data, processes it and converts it into information, which it stores and is subsequently made known to its users. Accounting is an information system, since it captures, processes, stores and distributes vital information for correct decision-making in the company.
The fundamental role that accounting has played is to control and organize the different activities of the company in order to know the situation in which it is, in an agile, timely and useful way, to carry out the purposes that are to be carried out and thus meet the objectives.
The SIC must not only be a system that provides information, which allows the management of the company to exercise mere technical control over it, but must also allow decision-making 1.
It is convenient to create a more detailed and precise accounting information system that allows to know exactly what is really happening in the organization and helps to have better tools for good decision-making at the right time.
Faced with the continuous change in the business world, we must be realistic about the transformations that are generated in the environment and three aspects must be taken into account: intangibles, technology and risk.
Users demand quality and trust in the information that is provided to them in accordance with social and individual behaviors. As John Kotter mentions, companies are embracing “a new business model that encourages and rewards creativity, high-quality service and value-adding work and puts knowledge at the center of strategic planning” 2.
Accounting must propose an information system based on principles that generate greater utility, since this is a way for entities to create value. As Kaplan and Norton indicate, "strategies, which are the only sustainable ways that organizations create value, are changing, but the tools to measure them are not" 3.
This is the reason why we should not stay with the simple technique of the accounting exercise but we must be eager for knowledge (live on the frontier of knowledge) and therefore create an information system that meets the needs of users.
3. The intangibles
IAS 38 defines an intangible asset as an identifiable, non-monetary asset without physical substance, held for use in the production or sale of goods and services, to rent to third parties or for administrative purposes4.
Among the intangible assets we can mention some such as: creativity, initiative, customer relationships, knowledge, innovation, learning; these are not valued in financial reports. It is then that the need to implement a more comprehensive information system arises, that is, to create a model that allows recognition of said assets.
That is why today intellectual capital is an essential element for the success of any organization.
Competitive companies are giving value to their intangible resources and in this way increasing their wealth. This is what is setting the tone, as few companies are recognizing such assets.
The information and accounting systems frequently used in economic entities lead to the measurement of benefits in monetary terms and for this reason they have a limited capacity to reflect the value and importance of intangibles in the organization.
Intellectual capital is divided into: human capital, structural capital and relational capital.
- Human capital refers to the knowledge that people have and that are useful for the company. Structural capital refers to the organizational knowledge that people in the company have. Relational capital refers to the value that the relationships it maintains with the outside world and mainly with customers have for a company, since sustaining them and generating new customers are key to its success.
Little by little, organizations will become aware of the value that their Intellectual Capital represents and how much they depend on it in the search for results.
The controversy that arises is in the measurement and valuation of the intangible assets that a company has (in the accounting reports).
4. New technologies
Today information processing plays a fundamental role.
New technologies are helping accounting information move in a faster and easier way. These may change the ways in which information is collected, stored, processed, distributed and analyzed.
The economy is based on technology and information, now companies are in the need to transmit high quality information and also speed up the process for good decision-making and be able to have all the information available by the time they is required by the user.
New technologies, and especially the Internet, today provide the company with the ability to develop and offer users useful and relevant information for decision-making, both in quantity and quality. Both in historical and future terms. Both in tangible and intangible terms 5.
One of the problems is that the information is not sufficient to be relevant and useful to be provided properly to the interested parties. The implementation of technology can facilitate the preparation of different reports, making the accounting cycle faster and thus making the right decision.
5. Conclusions
An essential aspect of the information generated by the accounting system is that it be directed to fully satisfy the needs of the different users of the information.
A challenge for the accounting profession is to create a mechanism where we can measure and value something as fundamental in a company as intangibles, in the same way, reveal information that helps make a good decision.
It is essential to use technology to fully comply with the purposes of accounting, which is to generate useful and timely reports to both internal and external users.
Bibliography
Rojo Ramírez, Alfonso A. "Accounting system and new information needs" In: Legislative magazine of the accountant # 7. 2001. Pages 11-50.
Ramírez Gutiérrez, Zoraida. "Perspectives and challenges of the education of the public accountant". October 2001. Pages 1-9.
Flores Mujica, Guillermo. "Intellectual capital in the field of financial accounting" In: Legislative Magazine
June 2000.
Notes:
(1) Accounting system and new information needs. Alfonso A. Rojo Ramírez. Law magazine of the accountant # 7. Page 23. 2001
(2) Cited in: Prospects and challenges of public accountant education. CP Zoraida Ramírez Gutiérrez. Page 3. 2001.
(3) Kaplan RS and Norton DP Page 8.2001.
(4) International Accounting Standard Committee. IAS 38 Intangible Assets. 1998.
(5) Accounting system and new information needs. Alfonso A. Rojo Ramírez. Law magazine of the accountant # 7. Page 32. 2001.
