Financial reporting standards


Mind Map on Financial reporting standards, created by marce14 on 08/22/2013.
Mind Map by marce14, updated more than 1 year ago
Created by marce14 over 9 years ago

Resource summary

Financial reporting standards
  1. Who rules accounting?
    1. in Mexico?
      1. Consejo Mexicano de normas de información financiera
      2. in USA?
        1. Financil accounting Standards Board
          1. Still follows his own GAAP
      3. International financial Reporting standards
        1. 2001 IASB was created
          1. More than 100 country are adhered but the US
            1. Mexico started adoption process in 2008
              1. Having the same IFRS as the rest of the world is an advantage for mexico
            2. Characteristics of accounting information
              1. Reliable
                1. Full disclosure
                  1. Everything that need to be said id said
                  2. Verifiable
                    1. Very transparent
                    2. Objective
                      1. Looks at the company as it is
                      2. Truthful
                        1. Accounting is concerned about what has already taken place
                      3. Relevant
                        1. Needs to inform the user everything that it has to know, ask "if i omit this information will something happen?
                        2. Comprenhensable
                          1. Information is worthless if you can't understand it
                          2. Comparable
                            1. For the information to be useful, it need to be comparable to something
                          3. NIF's
                            1. Structure
                              1. Particular guidelines
                                1. Valuation, presentation, disclousure
                                2. Professional Judgement
                                  1. If something is not covered he takes the decission
                              2. Postulates
                                1. Not Every country has the same postulates
                                  1. Economic substance
                                    1. Is the accounting recognition of transactions
                                    2. Economic Entity
                                      1. Identify the entity
                                        1. Person
                                          1. Firm
                                            1. Company
                                            2. Not mix it with any other entity
                                              1. Entity is independent from its shareholders
                                              2. Going Concern
                                                1. Unless stated otherwise, the company is understood to be operating indefinetly
                                                  1. Example: Mexicana de Aviación
                                                2. Accounting period and accrual basis accounting
                                                  1. All operations need a certain time
                                                  2. Matching principle
                                                    1. Reporting the expenses at the same time they are paid
                                                    2. Valuation
                                                      1. We need to show in our financial information the most current value.
                                                      2. Economic Duality
                                                        1. Where the money comes from and what are we doing with it
                                                          1. Resourses
                                                            1. What are our resourser
                                                            2. Origins
                                                              1. Where are we taking this resources from
                                                          2. Consistency
                                                            1. When you have tow similar operations, so you use a similar accounting system
                                                          3. Marcela Olivares A01331183 Matilde Guadalupe Suàrez Información Financiera
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