financial reporting standards (NIF)

Financial Reporting Standards


Financial Reporting Standards

NIF, what are they?

NIF are a set of general standards that serve to regulate and keep in order the information in a company's financial statements.

These are generally accepted by various entities and establish operating conditions limits in the accounting system, serving as a regulatory framework to issue a financial statement, thus avoiding discrepancies that may arise. 

These types of standards ultimately seek to ensure that the information provided is consistent with what is actually happening in the business on the date on which a financial statement is made, thus it will be possible to evaluate the performance, liquidity, profitability, and the business or company in question. In general, NIFs are a great tool in the business in order to manage it and quantify the tax obligations that must be met. 

What is the classification of Financial Reporting Standards?

These standards have classifications depending on the area of application. 

The classifications go from A to E with the 

A: Conceptual framework, here the structure of the standards, the basic postulates and the correct way to present them in the financial statements are reflected. 

B: Standards applicable to financial statements, refers to preparing financial statements in accordance with NIF, such as a cash flow statement, income statement, statement of financial position, a balance sheet, among others. 

C: Standards applicable to the specific concepts of the financial statements, which refer to specific concepts that are found within the financial statement such as; accounts receivable, investments, inventories, tangible assets, advance payments, among others. 

D: Rules applicable to problems of determining results, talks about usual problems to give a result, for example; leases, payments, income from customer contracts, employee benefits. 

E: Rules applicable to specialized activities in different sectors, here we talk about both lucrative and non-profit activities such as: donations that enter or leave. 

These standards have been made and supported by very important international institutions to know how an organization or entity really is and to support accounting as well as sustain accounting practice.

Validity of the NIF

NIFs constantly evolve according to the changes in the environment; they are standards that appear thanks to the user's need for financial information and the various conditions that arise.

What is financial information?

Speaking of accounting, it is quantitative information that records monetary and descriptive information, which shows the current state of a company or entity, often serves to make economic decisions and is reflected in financial statements, which is the document through which check this information.

Why must the Financial Reporting Standards be complied with?

Today organizations work with innovation and constant transformations in order to achieve greater competitiveness and one factor to comply with it is the application of the financial regulations in force in the country, for this ANEPSA has focused on making comprehensive solutions so that it is possible to comply with these regulations. of financial information.

NIF B-7 Business acquisitions

This standard is one of the most important for companies, since The purpose of NIF B-7 is to specify the rules for the recognition in the first instance of the date of acquisition of net assets, the controlled interest and other items that may arise from it, such as goodwill or extraordinary gain.

To achieve the objective of this standard, ANEPSA has the ability to obtain the fair and real value of all the assets or businesses that are identified in the acquisition or merger of companies requested under the guidelines of Financial Reporting Standard B-7.

To obtain the fair values of the identified items, the provisions of paragraph B-17 of the standard will be taken into account, using the valuation method most appropriate to each of the parts to be analyzed.

Contact one of the ANEPSA advisors to clear up your doubts and find out which appraisal is most appropriate for you or your organization. 

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