The normalization of accounting is a homogenizing activity of the accounting language, it must be analyzed from two approaches: a formal one that seeks the logical coherence of the propositions and a criticism from the complex assesses the economic, social and political implications that the implementation represents. of a regulation.
In this sense, the possibility and strength of the accounting standard to benefit some users and affect other groups or States that are part of the economic and social structure is striking. In this line, the Conceptual Framework of the International standard is presented to begin its study.
Words: Financial statements, usefulness of information, assets and results, international standard.
A brief comment on the most relevant elements of the IASC Conceptual Framework (today IASB) is presented below, with some notes on the comparison with Decree 2649 of 1993, which at no time is intended to be a comparative analysis of both conceptual frameworks; In this sense, there are many relationships that are not included.
Presentation of the Conceptual Framework.
The financial statements are prepared and presented to be used and known by external users around the world. Despite the similarity of some countries and others, there are differences that are caused by circumstances of a social, economic and legal nature, which makes it necessary for the framework to be flexible enough without losing uniformity.
The IASC board (IASB) is of the opinion that financial statements prepared in order to provide useful information in making decisions of an economic nature meet the needs of the majority of users. This is due to the fact that most of them make economic decisions, for example.
- The decision of when to buy, sell, or hold a capital investment Evaluate the responsibility of the management Evaluate the ability of the company to pay, and the provision of employee benefits Evaluate the solvency of the company for loans made to the company The determination of fiscal policies The determination of profits and dividends to distribute The preparation and use of national income statistics The regulation of the company's activities.
This conceptual framework has been developed in such a way that it is applicable to a wide variety of accounting models and concepts, as well as capital maintenance.
(Tua and Gonzalo 1988) establish that “A conceptual framework can be defined as an application of the general theory of accounting in which, through a deductive logical itinerary, the conceptual foundations on which financial information is based are developed, to the objective to provide rational support to accounting standards. Following a deductive logical itinerary implies that each of the steps contemplated in it is congruent with the previous ones, which reinforces the rationality of the final product. "
Thus, the content of the conceptual framework, analyzes sequentially, the following elements exposed by Tua: The definition of financial information in congruence with the needs of users, the formulation of two basic hypotheses, going concern and accrual; the establishment of its requirements or qualitative characteristics, necessary to ensure that the financial information meets its objectives, the definition of the concepts that make up the basic elements of the financial statements: Assets, payable liabilities, equity, expenses, and income; the establishment of the criteria for the recognition of these elements, the criteria that can be used in the valuation of such elements of the financial statements,the basic criteria that govern the maintenance of capital and its impact on the concept of results. (5)
The framework covers the following aspects: Scope
- The objective of financial statements The characteristics that determine the usefulness of the information contained in the financial statements The definition, recognition and measurement of the elements from which the financial statements are prepared, and Concepts of capital and capital maintenance.
The RUs are part of the financial reporting process. Normally, a complete set of financial statements comprises a Balance Sheet, an Income Statement, a Statement of changes in financial position - such as a cash flow statement and / or financing table - notes, supplementary statements and other explanatory material that be an integral part of the RUs. This Framework applies to all industrial, commercial or business companies, in the public or private sector.
Users in the US FF. And your needs:
- INVESTORS: -potential and real- are the providers of risk capital, Interested in the inherent risk and in the reimbursement of their investment - it helps them decide whether to buy, sell, or retain their investment- or the profitability and liquidity provided in the EMPLOYEES: including unions, they want to know the stability and profitability of their employers LENDERS: Interested in knowing the company's ability to make timely payments on maturity SUPPLIERS AND OTHER COMMERCIAL CREDITORS: Interested in knowing the capacity of payment of the company CLIENTS: those who are interested in the continuity of the company GOVERNMENT: (and government agencies), their interest is focused on the distribution of resources and on determining fiscal policies, as well as national income bases and similar statistics.PUBLIC:Who is interested in knowing the social impact.
It is emphasized that investors are priority users for financial information “since investors are the providers of risk capital to the company, the information contained in the financial statements that meet their needs will also cover many of the needs that other users expect. satisfy in such EEFF. "
“The management of a company has the primary responsibility to prepare and present the financial statements of the same. Management is also interested in the information contained in the Financial Statements, although it has access to additional information of a managerial and financial nature, which helps it in the development of its planning, decision-making and control of responsibilities ”.
Objective of the RUs.
The objective of the RUs is to provide information about the financial position, results and changes in the financial position of a company, which is useful for a wide variety of users in making decisions of an economic nature.
The EEFF prepared for this purpose meet the common needs of most users; However, financial statements do not provide all the information that these users may need to make economic decisions, since such statements mainly reflect the financial effects of past events and do not necessarily contain information other than financial
The RUs also show the results of the administration carried out by the management, or give an account of the responsibility in the management of the resources entrusted to it…
Decree 2649 of 1993; establishes in Title I, Conceptual framework of accounting, Chapter II, Objectives and qualities of accounting information, Article 3 “ Basic Objectives ”; In the aforementioned article, nine elements are mentioned for which the accounting information should be used.
Financial Position, Results and Changes in Financial Position. (IASC)
The economic decisions made by the user of the financial statements require an evaluation of the company's ability to generate cash and cash- equivalent resources, as well as permanent concern for liquidity. Users can assess the ability to generate cash, if information is provided on the financial situation, performance and changes in the financial position of the company.
The financial situation of a company is affected by the economic resources it controls, by its financial structure, by its liquidity and solvency; the information about the controlled economic resources and their ability in the past to modify such resources, allows evaluating the possibility of generating cash; the information on the financial structure is useful for predicting future loan needs; liquidity refers to the availability of cash in the near future, after taking into account the fulfillment of financial commitments for the period; solvency refers to the availability of cash with a long-term perspective, to meet financial commitments.
The information on performance and in particular on its performance, allows evaluating potential changes in economic resources; that are likely to be controlled in the future; It allows you to predict the ability to generate cash flows in the future and determines how effectively the company can use future resources.
Information on changes in financial position allows evaluating its financing, investment and operating activities, in the period covered by the financial information. It generates the basis for evaluating the capacity to generate cash and equivalents, as well as the needs of the company for the use of such cash flows.
The information about the financial situation is provided mainly by the Balance Sheet; the information on the activity is provided primarily by the Statement of Income and the information about cash flows is provided primarily by the Statement of Changes in Financial Position. The financial statements also contain notes, supplemental tables and other information.
The parts that make up the RUs are interrelated because they reflect different aspects of the same transactions or other events that occur to the company. Furthermore, the EEFF cannot be interpreted in isolation and independently, their reading must be joint.
The Decree 2649/93, Regulations General Accounting in Colombia, established in Title I, accounting conceptual framework, Chapter IV, Article 20: "EEFF major classes of " taking into account the characteristics of users who go Directed or the specific objectives that originate them, RUs are divided into General Purpose and Specific Purpose States.
Taking into account the characteristics of the users to whom the RUs are directed, it classifies them as follows:
General purpose.
- Basic financial statements: Balance Sheet, Income Statement, Statement of changes in equity, Statement of changes in financial situation, Statement of cash flows
- Consolidated financial statements.
Special purpose
- Beginning balance EEFF interim periods Cost statement Inventory statement EEFF Extraordinary EEFF Liquidation Statements presented to authorities EEFF prepared on a comprehensive basis other than GAAP.
Comparative financial statements
Certified and audited financial statements
In Decree 2649/93, in Chapter IV Of the Financial Statements and its elements, in section I, Of the Financial Statements, in articles 19 to 33 everything related to them is specified; importance, main classes of EEFF, those of general purpose, basic, consolidated, those of special purpose, those of intermediate periods.
Fundamental assumptions of the IASC Conceptual Framework
Accrual: In order to achieve its objectives, the RUs are prepared on the basis of accrual or accounting accrual. On this basis, the effects of transactions and other events are recognized when they occur (and not when cash or its equivalent is received or paid), and are recorded and presented in the financial statements in the periods to which they refer…
Decree 2649/93 presents this hypothesis, in the second title: On technical standards, in Chapter I, On general technical standards, in Article 48: “ Accrual or accumulation accounting ”; Accrued: Accounting Causation. (6)
Going Business: Financial statements are normally prepared on the basis that a business is operating and will continue operating activities for the foreseeable future. Therefore, it assumes that the company has no intention or need to liquidate or significantly cut the scale of operations. If such intention or need exists, the RUs may have to be prepared on a different basis, if so, information will be disclosed on the basis used in them.
The Business in progress is contemplated by Decree 2649 of 1993, in Title I, Conceptual Accounting Framework, Chapter III, Basic Standards, Article 7: "Continuity"
Qualitative Characteristics of the Financial Statements:
These are the attributes that provide the information contained in the EEFF, the usefulness for their users. The four main characteristics are: understandability, relevance, reliability and comparability.
- Understandability
To meet this essential quality, users must have reasonable knowledge about business, economic activities and Accounting, users must be willing to study financial information with reasonable diligence. However, due to the relevance of the need for economic decision-making by users, information should not be excluded for reasons of difficulty in understanding it.
- Relevance
To be useful, the information must be relevant to the decision-making needs of users. Information has the quality of relevance when it influences the economic decisions of those who use it, helping them to evaluate past, present or future events, or to confirm or correct evaluations carried out previously…
- Relative importance or materiality
… The information has relative importance or is material, when its omission or erroneous presentation can influence the economic decisions of the users, taken from the RUs. The materiality depends on the amount of the omitted item, or the evaluation error where appropriate, we always judge within the particular circumstances of the omission or error…
Information has the quality of reliability when it is free from material error and bias or prejudice and users can trust that it is the true image of what it purports to represent, or what it can reasonably be expected to represent. The information may be relevant, but so unreliable in nature, that its recognition could potentially be a source of misunderstanding…
- Faithful representation
To be reliable, the information must faithfully represent the transactions and other events that it purports to represent, or that it reasonably expects it to represent… Much of the financial information is subject to a certain risk of not being a true reflection of what it purports to represent; This is not due to bias or prejudice, but rather to inherent difficulties, either in identifying the transactions and other events that must be captured, or in projecting and applying the measurement and presentation techniques that can produce the messages that relate to those transactions and events…
- The essence over the form
… It is necessary that it be accounted for according to the essence and economic reality, and not merely according to its legal form. The essence of transactions and other events is not always consistent with what their legal form or external plot appears…
The Decree 2649/93, set out in Title I, Chapter III, Article 11 " Essence of Form ": Resources and economic facts must be recognized and disclosed in accordance with its essence or economic reality and not merely their legal form…
- Neutrality
The information must be neutral, that is, free from any bias or prejudice. The RUs are not neutral if, by the way they capture or present the information, they influence the making of a decision or the formation of a judgment, in order to achieve a predetermined result or outcome.
- Prudence
The producers of financial statements are faced with the uncertainties that inevitably surround many events and circumstances, such as the recoverability of doubtful balances, the probable useful life of property, plant and equipment or the number of claims for post-sale warranty. that the company can receive. Such uncertainties are recognized by presenting information about their nature and extent. As well as the exercise of prudence in the preparation of financial statements.
Prudence is the inclusion of a certain degree of caution, when making the necessary judgments when making the required estimates under conditions of uncertainty, in such a way that assets or income are not over-valued and that obligations or expenses are not undervalued.. However, the exercise of prudence does not allow, for example, the creation of hidden reserves or excessive provisions, the deliberate undervaluation of assets or income or the conscious overvaluation of obligations or expenses, because otherwise the RUs would not be neutral and therefore they would not have the quality of reliability. The Mexican edition of the standard is explicit in mentioning "the exercise of prudence does not allow, for example, the creation of hidden reserves or excess provisions"
The Decree 2649 of 1993, establishes in Title I, Chapter III, Article 17 " Prudencia " whenever there are difficulties in measuring reliable and verifiable manner an economic fact done, you should choose to register the alternative that is less likely to overestimate assets and income, or underestimate liabilities and expenses.
- Complete financial information
In order to be reliable, the information contained in the RUs must be complete, that is, within the limits of cost and importance. An omission may cause the information to be false or incomplete and consequently unreliable and deficient in its relevance. Decree 2649 of 1993, in Title I, Chapter III, Article 15, " Full disclosure ", the economic entity must report in full, although summarized…
- Comparability
Users must be able to compare the financial statements of a company over time, in order to identify trends in financial position and performance. Users should also be able to compare the financial statements of different companies, in order to evaluate their financial position, performance and changes in financial position in relative terms. Therefore, the measurement and presentation of the financial effect of similar transactions and other events must be carried out in a consistent manner throughout the company, over time for that company and also in a consistent manner for different companies.
… Users should be informed of the accounting policies used in the preparation of financial statements, as well as of any changes presented and their impact on the interpretation of financial information… The need for comparability should not be confused with mere uniformity, and nor can it be an obstacle to the introduction of improved accounting standards… it is inappropriate for a company to keep its accounting policies unchanged when there are other more relevant or reliable ones.
Restrictions on relevant and reliable information
- Opportunity
If there is a delay in the presentation of the information, it may lose its relevance… it is frequent that in order to provide information on time it is necessary to present it before all aspects of a certain transaction or other event are known, damaging its reliability. Conversely, if the information is delayed until all aspects are known, the information can be very reliable, but of little use for decision-making… the important thing is a balance between relevance and reliability, where the needs of the company are better met. economic decision-making by users.
- Balance between cost and benefit
The benefits derived from the information must exceed the costs of providing it. However, the evaluation of benefits and costs is substantially a value judgment process. In addition, the costs are not necessarily borne by those who obtain the benefits… in this sense it is difficult to apply an objective cost-benefit relationship.
In Decree 2649 of 1993, Art. 4, " Qualities of accounting information ", which the text outlines them in three groups: Comprehensibility - clear, easy to understand; Utility - relevant (feedback value, prediction and timely), reliable (neutral, verifiable, faithful representation) - comparable - uniform bases-.
- Balance between qualitative characteristics
The object is to achieve an appropriate balance between the qualitative characteristics, in order to fulfill the objective of the RUs, the relative importance of each characteristic in each particular case is a matter of professional judgment.
- Fair image / fair presentation
… The application of the main qualitative characteristics and the appropriate accounting standards will normally lead to financial statements that transmit what is generally understood as a true image or a reasonable presentation of such information.
ELEMENTS OF THE FINANCIAL STATEMENTS
The EEFF reflect the financial effects of transactions and other events by grouping them into broad classes according to their economic characteristics. These broad classes are called the elements of Financial Statements (Assets, Liabilities, Equity- Income and Expenses)
In Decree 2649 of 1993, we find what is related to the elements of the financial statements, in Title I, Chapter IV, section II, Of the elements of the financial statements, contemplated in articles 34 to 45.
In Article 34, it establishes “Enumeration and relation”: these are elements of the RUs, assets, liabilities, equity, income, costs, expenses, monetary correction, memorandum accounts…
FINANCIAL POSITION:
The elements directly related to the measurement of the financial position are: assets, liabilities, and equity. The definition is noted according to the Conceptual Framework of international regulations; Next to each definition, the article of Decree 2649 of 1993 is noted, so that the interested party can consult it for comparison purposes.
- Active: It is a resource controlled by the company as a result of past events and whose future economic benefits are expected to flow to the company. Compare Art. 35 D-2649/93. Liability: It is a present obligation of the company derived from past events, the payment of which is expected to result from outflows of company resources that imply economic benefits. Compare Art. 36 D-2649/93. Net worth: It is the residual interest in the assets of the company, after deducting all its liabilities. Compare Art. D-2649/93.
-Assets: The future economic benefits incorporated into an asset consist of its potential to contribute directly or indirectly to the cash flows and other cash equivalents of the company.
The economic benefits of a company incorporated into an asset can come in different ways. Example:
- Used individually or in combination with other assets in the production of goods or services to be sold by the company. Exchanged for other assets. Used to settle a liability; oDistributed to the owners of the company.
- Liabilities: An essential characteristic of all liabilities is that the company has an obligation at the present time. The decision to acquire an asset in the future does not, by itself, give rise to a liability. The settlement of a present obligation can occur in many ways, for example:
- Cash disbursement Transfer of other assets Provision of services Substitution of the obligation with a similar one; oCapitalization.- conversion of liabilities into equity.
The liabilities arise from transactions or other events that occurred in the past; certain liabilities can only be assessed using a high degree of estimation; Such liabilities could be called provisions, but in an orthodox orientation of the term liability, the provision would not meet the liability requirements.
-Equity: Equity can be subdivided for the purposes of presentation in the balance sheet; sometimes the creation of reserves is mandatory by law, in order to give the company and creditors additional protection against the effects of losses.
RESULTS:
The elements directly related to the measurement of profit are income and expenses.
- Income: These are the increases in economic benefits; produced during the accounting period, in the form of entries or increases in the value of assets, or decreases in liabilities, which result in increases in equity, different from those related to contributions by partners. 38. D-2649/93. Expenses: These are the decreases in economic benefits, produced during the accounting period in the form of exits or depletion of assets, or the emergence of liabilities, which result in decreases in equity, other than those related to capital distributions of the partners. Art. 40. D-2649/93.
Income and expenses can be presented in different ways in the income statement, in order to provide relevant information for making economic decisions; make distinctions between items of income and expenses, and combine them in different ways. It also allows various outcome measures to be presented.
-Income: The definition of income includes both ordinary income and profits; When generating an income, different types of assets can be received or increased in value.
-Expenditure: The definition of expense includes both losses and expenses that arise in the ordinary activities of the company. Among the expenses of ordinary activity are: sales costs, salaries and depreciation.
The revaluation or restatement of the value of assets and liabilities gives rise to increases or decreases in equity. These concepts are not included in the income statement and are dealt with in the capital maintenance point.
The Decree 2649 of 1993, section of the elements of the RUs, in addition to the above elements defined as follows: Article 39 " Borrowing Costs";. Art. 41 "Monetary correction"; Art. 42 "Contingent memorandum accounts"; Art. 43 "Fiduciary memorandum accounts"; Art. 44 "Fiscal memorandum account" and Art. 45 "Control memorandum accounts"
RECOGNITION OF THE ELEMENTS OF THE FINANCIAL STATEMENTS:
Recognition is called the process of incorporation, in the balance sheet or in the income statement, of an item that meets the definition of a corresponding element, in addition to meeting the criteria for its recognition, an item that meets the definition of an item, should be recognized, only when:
- Any future economic benefit associated with the particular item is likely to flow to or from the business, and the item has a cost or value that can be reliably measured.
In Decree 2649 of 1993, Art. 47 “recognition of economic facts” the characteristics are indicated for an economic fact to be recognized.
MEASUREMENT OF THE ELEMENTS OF THE FINANCIAL STATEMENTS:
Measurement is the process of determining the monetary amounts at which the elements of the financial statements will be recognized and maintained in the balance sheet and in the income statement.
The probability of future economic benefits
The concept takes into account the uncertainty with which the future economic benefits associated with it will come to, or leave, the company; the concept takes into account the uncertainty that characterizes the environment in which the company operates. The measurement of the degree of uncertainty, corresponding to the flow of future benefits, is made from the evidence available when the RUs are prepared.
Measurement reliability
The cost or value must be measured reliably, the use of reasonable estimates is accepted, if this reasonable estimate cannot exist, the item should not be included in the information of the elements of the Financial Statements, but it can be included in explanatory notes.
The Conceptual Framework also makes reference in the noted direction, to the recognition of assets, liabilities and expenses.
BASES OF MEASUREMENT
Measurement is the process of determining the monetary amounts for which financial statements are recognized and kept in the accounts, for inclusion in the balance sheet and income statement. For this, different measurement bases are used with different degrees and in different combinations between them. Such bases or methods are the following: the article number at the end of each definition corresponds to the reference made to Decree 2649 of 93, so that it can be read and compared.
- Historical cost: Assets are recorded according to the amount of cash or equivalent paid, or the fair value - reasonable - of the compensation given to acquire them at the time of their acquisition. Liabilities are recorded at the amount of products received and exchanged for the obligation or in some circumstances (income tax), at the amounts of cash or equivalent that are expected to be paid to settle the liability in the normal course of business. 49. - Art. 10. D-2649/93. Current cost - current -: Assets are recorded at the amount of cash or its equivalents, which could have been paid if the same or an equivalent asset were acquired at the current time, liabilities are recorded at the undiscounted amount of cash or equivalent that would have been required to settle the obligation in the present moment. Art. 10. D-2649/93 referred to in this article, also as replacement value. Realization or liquidation value: Assets are recorded at the amount of cash or equivalent, which could currently have been obtained in a normal way, through the sale of the asset, the liabilities at their liquidation value. Art. 10. D-2649/93 also known as market value. Present value: Assets are recorded at their discounted present value, discounting the net cash inflows that the item will generate in the normal course of business. Liabilities are discounted at their present discounted value, related to future net cash outflows that the item will require to settle liabilities in the normal course of operations. Art. 10. D-2649/93 also known as discounted value.
CAPITAL CONCEPT AND CAPITAL MAINTENANCE:
Capital Concepts: Most companies adopt a financial concept of capital when preparing information, under this concept of capital, which translates into the consideration of the money invested or the purchasing power invested, capital is synonymous with net worth. If, on the contrary, a physical concept of capital is adopted, such as productive capacity, capital is the company's operating capacity, such as the number of units produced daily.
Concepts of capital maintenance and profit determination:
-Maintenance of Financial capital: Under this concept, profit is generated only if the financial amount (or money), of net assets at the end of the period, exceeds the financial amount (or money) existing at the beginning of the same period, excluding the contribution or distribution of the same to investors. The maintenance of financial capital can be measured in nominal monetary units or in units of constant purchasing power.
- Maintenance of Physical Capital: Under this concept, the profit is generated only if the physical productive capacity in physical terms (or operational capacity), of the company or of the resources or funds necessary to achieve such capacity, at the end of the period exceed the capacity productive physical at the beginning of the same, after excluding any distribution and / or contribution of the owners during the period.
The concept of capital maintenance is related to the way in which a company defines the capital that it wants to maintain… it allows to distinguish between what is return on capital and what is capital recovery. The concept of maintenance of physical capital requires the adoption of current cost as the basis for accounting measurement; while the maintenance of financial capital does not require any particular basis.
In Decree 2649 of 1993, Art. 14. "Maintenance of patrimony" the criteria of capital maintenance and the obtaining of profit by an economic entity are indicated, indicating the financial capital or (contributed) and the physical patrimony (operating); it also refers to the necessary update to reflect the effect of inflation.
Postscript
The comparison made in this article between the IASC Conceptual Framework (IASB) and Decree 2649 of 1993 (without being the objective of the article) gives the impression that Colombia is currently in line with the theoretical-technical elements of the international standard accounting, which is actually not true.
The IASC Conceptual Framework (now the IASB) was approved in 1989 and this constitutes the source of the Colombian accounting regulations contemplated in Decree 2649 of 1993, but while international regulations have been dynamic and constantly evolving, D / 2649 of 1993 has remained without any type of change or conceptual evolution of transcendence that modifies its spirit or essence.
International accounting standards were characterized in the nineties by their dynamics and constant change. All international accounting standards were reformed, revised, reordered and / or repealed in that decade; the body itself suffered a major reorientation in 2000-2001 that precisely led to the IASC being replaced by the IASCF, on which the IASB depends as the issuing body of international financial performance reporting standards (IFRS)
The international standard has taken a transcendental turn towards fair value, an element that the Conceptual Framework does not contemplate and that Colombian accounting obviously does not develop in its theoretical orientation. The force of "fair value" poses as a necessity to enhance the harmonizing process (read regulatory imposition), with the basic objective of favoring the comparability of financial information of entities-companies that act in the same market. Orientation that responds to the needs of a globalized market that privileges the needs of the users of entities that participate in public securities markets.
Fair value (the essence of the new orientation) has its spirit in the free market economy, a scheme that has been “contemplated by both the FASB and the IASB” and recently by the directives (regulations) of the European Union.
In conclusion, Decree 2649 of 1993 remained in the past of international regulations, (of which it is a defective copy); But while the international standardization structure changed and continues to change, the Colombian regulation remained at an a-critical and unchangeable point (stagnant)
Bibliography
- Franco Ruiz, Rafael. Requiem for trust. Pereira: Investigate, 2002. García Diez, Julita and Lorca Fernández Pedro. Acceptance of International Accounting Standards: a process not without difficulties. In: Contador Magazine No 10 (April-June 2002); pp. 15-44 Gil, Jorge Manuel. International Accounting Standards and technology transfer. In: Contador Magazine. No 6 (April-June 2001) pp. 87-102 Gonzalo Angulo José and Tua Pereda Jorge. Introduction to International Accounting. Madrid: Institute of Accounting Planning, 1988. Jarne Jarne José Ignacio and Laínez Gadea José. The accounting harmonization process in the European Union: towards international standards. In: Contador Magazine (July-September 2002); pp. 11-38 Blanket White, Samuel Alberto. Adoption of International Accounting Standards. In: Contador Magazine. No 6 (April-June 2001, pp. 103-140) Mantilla Blanco, Samuel Alberto. Guide for the Colombian accounting insertion in international scenarios. Bogota: JAVEGRA, 2002. International Accounting Standards, 2001, Institute of Authorized Public Accountants of the Dominican Republic. (ICPARD), 2002, International Accounting Standards, 1999, Institute of Certified Public Accountants of the Dominican Republic. (ICPARD), 1999. International Accounting Standards, Madrid, Editions of the Institute of Chartered Accountants of Spain, 1989. Pina Martínez, Vicente. Economic Effects of Accounting Standards. Madrid: aeca, 1988. General Accounting Regulations, Bogotá. DC Legis, 2002.Rueda Delgado, Gabriel. Alternative development and accounting: an approach. In: Contador Magazine No 9 (January-March. 2002); pp. 11-128.Tua Pereda, Jorge. Spain reflects on International Standards. In: Contador Magazine No 13 (January-March 2003) pp. 93-154.Tua Pereda, Jorge. Accounting Theory and Research Readings. Medellín: CIJUF, 1995. Tua Pereda, Jorge. International accounting and auditing standards on the impact of the environment on financial information. In: Contador Magazine. No 7 (July-September 2001); pp. 117-166 Vasquez Tristancho, Gabriel. Prospective accounting. In: Revista del Contador No 5. (January-March 2001); pp.67-92.Willians, Jan and Holzmann, Oscar. GAAP Guide. Miami: Murray Editorial, 1995.
The commentary is analyzed from the text of the Mexican edition of 1995, and the texts of the Dominican edition of 1999 and 2001.
The logical deductive itinerary in the establishment of accounting principles, formulated in Tua 1983, follows the following path; description of the features of the environment, description of the characteristics of the accounting system and derivation of the rules for practice, from which it can be concluded, which again is established in Tua 1995 “any attempt to achieve absolute uniformity between national practices, without taking into account the reasons for the differences can lead to a reduction in the quality of the information, insofar as there may be inconsistencies between business objectives, accounting objectives and accounting rules ”.
(5) Tua Pereda, Jorge. International accounting and auditing standards on the impact of the environment on financial information. In: Contador No 7. (July-September 2001); pp. 134-139
General accounting regulation, Legis. 2002.
The Special Purpose Financial Statements, specifically contemplated in Article 24 of Decree 2649 of 1993, is understood - and the Decree as a whole - for Professor Jack Alberto Araujo Ensuncho, as a change in the accounting paradigm for Colombia: The utility of the information. This is a concept that deserves further analysis, but to give an additional element to the discussion, it is noted that Professor Tua refers to two paradigms in accounting, the Paradigm of True Profit and that of Information Utility.
(6) Dictionary of accounting terms for Colombia, Editorial Universidad De Antioquia. 2nd Edition. 1998
“Materiality or relative importance is for Moonitz a concept with a marked statistical character: small items should not be taken into account; but it is also a concept with a strong psychological load: an item must be considered as material if there is reason to think that its knowledge can influence the decisions of an informed investor, an indeterminate expression and similar to legal constructions such as those of a diligent father of a family or an orderly merchant… "
With respect to prudence, denominated by Moonitz as Conservatism, Tua makes the following comment “similar observations - regarding relative importance - Moonitz makes with respect to conservatism, a habitual accounting reaction to uncertainty. The criticism at this end is open: the treatment may not be consistent, because if the lower value is chosen between the cost price and the market price. "What reason is there not to apply the same criteria when it is the other way around?…."
The underline can be understood as Moonitz's imperative postulate C3, Consistency: the procedures used in accounting for a given entity must be appropriate to measure its situation and its activities and must be followed consistently from period to period.
Complete bibliography of the text "introduction to International Accounting Standards"
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