SAN PRIVATE UNIVERSITY

CARLOS

FINANCIAL STATEMENTS

INTEGRANTES:
● VELARDE QUISPE Paola katherine
● FLORES CRUZ Griselda Wendy
PALOMINO PINO Yanira fayol

PUNO-PERU
2019

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Content
WHAT ARE FINANCIAL STATEMENTS?.......................................................................3
ORIGIN OF FINANCIAL STATEMENTS
QUALITIES OF FINANCIAL STATEMENTS
OBJECTIVES OF THE FINANCIAL STATEMENTS..............................................................4
APPLICATIONS AND LIMITATIONS OF ANALYSIS AND INTERPRETATION OF THE
FINANCIAL STATEMENTS.................................................................................................4
STAKEHOLDERS IN THE FINANCIAL STATEMENTS..........................................5
BASIC FINANCIAL STATEMENTS.........................................................5
AUDITED FINANCIAL STATEMENTS...............................................................6
METHODS OF ANALYSIS OF FINANCIAL STATEMENTS.........................................6
VERTICAL ANALYSIS:.....................................................................................................6
HORIZONTAL ANALYSIS:...............................................................................................7
DUPONT METHOD:.......................................................................................................7
NIC 1 PRESENTATION OF FINANCIAL STATEMENTS................................................7
WHAT IS THE PURPOSE OF FINANCIAL STATEMENTS?..........................................8
WHAT DOES A SET OF FINANCIAL STATEMENTS COMPRISE?
What does the reasonable presentation of the financial statements consist of?
COMPLIANCE WITH IFRS?.............................................................................................9
IDENTIFICATION OF THE FINANCIAL STATEMENTS?.....................................................9
OBJECTIVE OF THE FINANCIAL STATEMENTS (CONASEV)..............................................10
WHAT IS A CLOSING SEAT?............................................................11
CONCLUSIONS. 13
BIBLIOGRAPHY. 14

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WHAT ARE FINANCIAL STATEMENTS?

This document aims to provide information about the financial situation of the
company to assist in decision making. Shows the financial situation of
an economic entity on a given date is prepared in accordance with
standards, principles, and rules established by accounting.
The Financial Statements serve as a basis for other reports, including tables and
graphs that allow defining profitability, solvency, liquidity, market value and
other parameters that are fundamental for managing a situation.
When we talk about financial statements, it is usually taken for granted that they are
those referring to the past or current situation, although it is also possible to formulate
projected financial statements. Thus, there can be a projected statement of situation,
a projected income statement or a projected cash flow statement.

ORIGIN OF FINANCIAL STATEMENTS

EMPERICAL ERA: The information was used for the food control of the tribes,
then aimed at state decision-making.
TECHNICAL ERA: The information was related to banking issues and
stock exchanges or to large commercial businesses, the balances are intensified and
reports of income and expenses appear.
SCIENTIFIC ERA: Financial statements are the basis of other reports for the
the development of commercial companies varied the economic circumstances and
legal because it was necessary to specify the profit, formalized through NIC No. 1.

QUALITIES OF FINANCIAL STATEMENTS

Financial statements are normally prepared under the assumption that a

the entity is operational and will continue its activity in the future
foreseeable.
Qualitative characteristics are the attributes that make it useful for users.
information provided in the financial statements. The four main
qualitative characteristics are understandability, relevance, reliability and
comparability. In practice, it is often necessary to have a balance or counterweight.
among qualitative characteristics.
The qualities of financial statements must be based on the characteristics.
of accounting information.” Generally accepted accounting principles

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OBJECTIVES OF THE FINANCIAL STATEMENTS
The objective of financial statements is to provide information about the
financial situation, performance, and changes in the financial situation of a
a company that is useful to a wide range of users in order to make
economic decisions. Thefinancial statementsthey must be understandable,
relevant, reliable and comparable.

APPLICATIONS AND LIMITATIONS OF ANALYSIS AND INTERPRETATION OF THE

FINANCIAL STATEMENTS
Applications.
Thefinancial statementsmainly focus on providinginformationabout the
heritagefrom the issuing entity to a date and itsevolutioneconomic and financial in the
periods they cover, to facilitate economic decision-making.
It is also considered that the information to be provided in the financial statements
it should refer to a series of aspects of the issuing entity among which are: Its
financial situation as of the date of said statements, a summary of the causes of
result assignable to that period, the evolution of its assets during the period, the
evolution of your financial situation over the same period, other facts that help
to evaluate the amounts, timing, and uncertainties of future cash flows
that investors and creditors will receive from the entity for various concepts.

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Limitations.
Financial statements may present defined limitations, even though they are
you know them for having an exact appearance, some of these are:
● They arereportsnormally provisional and therefore cannot be
definitive, because the real profit or loss of a business can only be
to determine when it is sold or liquidated.
● They show exact monetary amounts, which gives an appearance of
accuracy and ofvaluesdefinitive. The reader must attribute to these amounts
his ownconceptof thevalueeven if they have been established on the basis of
completely different standard values.
● The Financial Statements do not reflect many factors that affect the
financial condition and the results of theoperations.
Analysis of financial statements.
It can be said that it is the disintegration or separation of values that appear in
these states, in order to understand their origins, the changes they have undergone, and their causes,
in order to have a more precise and truthful idea about the financial situation
from onecompany. When performing the analysis of the Financial Statements, one
they then obtain the criteria and sufficient bases to make the decisions that
better suit the company.

Stakeholders in the financial statements

Each one of the Public Limited Companiesemploys in a very diverse way therecordse
regular reports of their financial activities.
1. The organisms ofcontrol, such as federal securities commissions and
state-run, require the accurate declaration of financial information
corporate.
2. Creditors use this information to assess the ability tothe
companyto fulfill the scheduled debt payments
3. Owners use it to decide whether to buy, sell, or
preserve theactionsfrom the company.
4. Themanagementhe/she is concerned about complying with the regulatory provisions for
satisfy creditors and owners, and to supervise the
functioning of the company.

BASIC FINANCIAL STATEMENTS

The following are available:

● Income Statement: provides a financial summary of the

operating results of the company during a specific period. The

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 the most common are the income statements that cover a period of
a year that ends on a specific date, generally, the 31st of
December of the following year.
● Balance Sheet: presents astatewhat summarizes the financial position
of the company at a specific moment. It makes a comparison between
theassetsof the company (what it owns) and itsfinancing, which can
being in debt (what is owed) or ofcapitalaccountable (what they contributed the
owners)
● Retained earnings statements: Reconcile the net income obtained
during a specific year and any cash dividend paid, with the
changein the retained earnings between the start and the end of that year.
● States ofcash flowProvides a summary of cash flows
during the study period, commonly the year that just ended.
This state, which is sometimes referred to as the state of origin and application,
help to understand the operating cash flows, ofinvestmentand of
company financing.

AUDITED FINANCIAL STATEMENTS

Audited financial statements are defined as those that have been subject to
an audit has been carried out through which the financial situation is reviewed and inspected
information presented in them, with the main purpose of presenting to
any external agent to the company ororganizationa sustainable base and
certified of the financial statements generated by it.
Theauditfinancial is carried out by public accountants who allow
determine the reliability and veracity of the information presented, thus allowing
avoid financial statements of fraudulent origin.

METHODS OF ANALYSIS OF FINANCIAL STATEMENTS

ThemethodsFinancial analysis consists of examining in detail and
needs all thedatacontents in the financial statements in such a way that they
they can determine their origins, the changes undergone, and their causes that allow
obtain an accurate representation of the company's financial situation.
Some of the methods used for the analysis of financial statements are:

VERTICAL ANALYSIS:
Thismethodit refers to the use of the financial statements of a period
to know your situation or results, your analysis consists of the comparison of
the figures in vertical form. Because it analyzes and compares data from a single
period is considered a static method. The percentages obtained
correspond to the figures of a single exercise.

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The relative composition of assets, liabilities, and equity is arranged vertically.
results.

HORIZONTAL ANALYSIS:
This method consists of determining the similarities and differences that exist between
the different magnitudes contained in the Financial Statements. It is carried out through
from the comparison of two or more consecutive periods
This analysis is of greatutilityfor a company as it determines whether the changes
produced and the results are positive or negative. Similarly, it allows to know
which deserves moreattentionfor your immediateevaluation.

It is considered a dynamic method since it relates to financial changes.

presented in increases or decreases from one period to another andsamplethe
variations in absolute numbers, percentages, or ratios, which allows
broadly observe the changes presented for their study, interpretation and
decision making.

DUPONT METHOD:
The DuPont method is used as astructureto examine thoroughly
the financial statements ofa companyand evaluate your financial condition. The same
it is based on identifying the areas responsible forperformancefinancial of the
company and brings together, in principle, the net profit margin, which measures theprofitability
of the company in relation to thesales, and the total asset turnover, which indicates
how efficiently the assets have been utilized for generating sales.
The Dupont method merges theincome statementand thebalance sheetin two
summary measures of profitability: return on assets (ROA) and the
return on equity (ROE). In the Dupont formula, theproductof
these two reasons result in the return on assets (ROA).

NIC 1 PRESENTATION OF FINANCIAL STATEMENTS

OBJECTIVES
This Standard establishes the foundations for the presentation of financial statements
general purpose, to ensure that they are comparable, both with the
financial statements of the same entity for previous periods,
like those of other entities. This Standard establishes general requirements
for the presentation of financial statements, guidelines for determining their structure
and minimum requirements regarding its content.

SCOPE

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An entity shall apply this Standard in preparing and presenting financial statements of
purpose of general information according to International Standards of
Financial Information (IFRS).
This Standard uses terminology specific to for-profit entities,
including those belonging to the public sector. If the entities with activities without
profit-oriented entities in the private sector or the public sector apply this Standard, could
verses required to modify the descriptions used for specific games of
the financial statements, and even for these.

WHAT IS THE PURPOSE OF FINANCIAL STATEMENTS?

The financial statements constitute a structured representation of the situation.
financial and financial performance of an entity. The objective of the statements
Financial is to provide information about the financial situation,
financial performance and cash flows of an entity, that is useful to a
wide variety of users when making their economic decisions. The
financial statements also show the results of the management carried out by the
managers with the resources that have been entrusted to them. To fulfill this
Objective: The financial statements will provide information regarding the following
elements of an entity:
assets
(b) liabilities

c) heritage
income and expenses, which include gains and losses
contributions from the owners and distributions to them in their condition
of such
(f) cash flows.
This information, along with that contained in the notes, helps users to
predict the entity's future cash flows and, in particular, their distribution
temporal and its degree of certainty.

What does a set of financial statements comprise?

A complete set of financial statements includes:
a statement of financial position at the end of the period;
(b) a statement of comprehensive income for the period;

(c) a statement of changes in equity for the period;

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(d) a cash flow statement for the period;
(e) notes that include a summary of the most significant accounting policies and
another explanatory information; and

a statement of financial position at the beginning of the first comparative period,

when an entity applies an accounting policy retroactively or makes a
retroactive repression of items in their financial statements, or when reclassifying
items in their financial statements.
Note: an entity may use titles to refer to the previous states.
different from those used in this standard.

What does the reasonable presentation of the financial statements consist of?
COMPLIANCE WITH IFRS?
The financial statements must reasonably present the financial position and
the financial performance, as well as the cash flows of an entity. This
reasonable presentation requires the faithful presentation of the effects of the
transactions, as well as other events and conditions, in accordance with the
definitions and the recognition criteria for assets, liabilities, income, and expenses
established in the Conceptual Framework 16 An entity whose financial statements
The compliance with IFRS will make a statement in the notes, explicit and without reservations.
of such compliance. An entity will not indicate that its financial statements
they comply with the IFRS unless they meet all the requirements of these.
It is presumed that the application of IFRS, accompanied by additional information
when necessary, will result in financial statements that provide a
reasonable presentation.

IDENTIFICATION OF FINANCIAL STATEMENTS?

An entity will clearly identify each financial statement and the notes. In addition, a
entity will prominently display the following information, and will repeat it when
it is necessary for the information presented to be understandable:
(a) the name of the entity or another form of identification of it, as well as the
changes related to that information since the end of the previous period; IAS 1
(b) whether the financial statements belong to an individual entity or to a group of
entities;
(c) the date of the end of the reporting period or the period covered by
the game of financial statements or notes;
(d) the presentation currency, as defined in IAS 21; and

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the degree of rounding applied when presenting the figures of the states
financial.
WHAT DOES THE SMV SAY (CONASEV Resolution No. 0103-1999)

Published on 11/26/1999
That, article 114 of Law No. 26887, General Law of Companies, provides that
The general shareholders' meeting must be held at least once a year.
within three months following the end of the financial year, to express themselves among others,
about social management and the results expressed in the financial statements of
previous exercise;
That the financial statements of legal entities organized according to the
General Law on Companies must be prepared and presented in accordance with
the Generally Accepted Accounting Principles, as provided in the
Article 223 of the aforementioned Law, to be understood as such as the Regulations
International Accounting Standards as indicated by Resolution No. 013-98-
EF/93.01 of the Accounting Regulatory Council;
That the financial statements prepared in accordance with uniform rules serve to
basis for properly analyzing and reporting the financial situation and results
from the company, facilitating an adequate decision-making process for investors;
That, in light of the globalization of the economy and the internationalization of the
markets, it is necessary for financial information to be prepared in accordance with
international accounting standards in order to facilitate the analysis and
interpretation of that information, which must be truthful, sufficient, and timely in
in accordance with article 10 of Legislative Decree No. 861, Market Law
Values;
That, in this context, it is necessary to update the regulations on preparation.
and presentation of financial information in accordance with International Standards
of Accounting;

OBJECTIVE OF FINANCIAL STATEMENTS (CONASEV)

1.-Present reasonably information about the financial situation, the
results of the operations and the
cash flows of a company.
2.- Support management in planning, organizing, directing, and controlling the
businesses.
3.- Serve as a basis for making decisions about investments and financing.
4.-Represent a tool to evaluate the management of the management and the
capacity of the company to
generate equivalent cash equivalents.

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5.- Allow control over the operations carried out by the company.
6.- To be a basis for guiding the management and shareholders' policy in this matter
corporate.
The qualities of financial statements are the following:
1. Comprehensibility, the information must be clear and understandable for users with
reasonable knowledge about business and economic activities;
2. Relevance, with useful, timely, and easily accessible information in the decision-making process.
user decisions that are not in a position to obtain information from the
measure of their needs. The information is relevant when it influences the
economic decisions of users when assisting them in the evaluation of events
presents, past or future or confirming or correcting their evaluations
past
3. Reliability, for which the information must be:

a) Reliable, representing the results and the situation reasonably

financial of the company, being possible its verification through demonstrations
that they accredit and confirm.
b) Presented reflecting the substance and economic reality of the transactions and
other economic events regardless of their legal form.
c) Neutral to the objective, that is, free from significant error, bias for
subordination to specific conditions of the company.
d) Cautious, that is, when there is uncertainty in estimating the effects of
certain events and circumstances, one must choose the option that has less
probabilities of overestimating assets and income, and underestimating liabilities
and the expenses.
e) Complete, providing all that is significant and necessary for
understand, evaluate and correctly interpret the financial situation of the
company, the changes it may have experienced, the results of the
operations and the ability to generate cash flows.
f) Comparabilidad, la información de una empresa es comparable a través del
time, which is achieved through the preparation of the financial statements on
uniform bases.

What is a closing seat?

The definition of closing entry is the operation through which the
operation record of a company, to provide a view of the
assets, the company's economic situation and the results in a
specific moment in time.

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The closing entry aims to equalize the balances numerically.
debtors with creditor balances or vice versa. Once the
financial statements, one of the last tasks to be carried out is to proceed with the closing of the
different accounting records used throughout the financial year to archive them
for a specified period of time. It also includes the temporary closure of
the equity accounts (assets, liabilities, equity) once closed the
Exercise, they become an opening at the beginning of the next period.

The closing of accounting records of an organization has several objectives, such as

the following:
○Do not facilitate the subsequent inclusion of transactions that do not affect or are not
they are presented in the financial statements.
Close all profit and loss accounts in a definitive manner.
Incorporate the results achieved at the end of the year into the accounting.
to say, the profit or loss.
Temporarily close balance accountspassive, activeand heritage).

The closing seats are identified by a series of characteristics. Among others

Things are prepared every year. Only on the cut-off date for issuance.
offinancial statements.

In summary, the closing entry or accounting closing means, in the first place, the
regularization of the expense and income accounts to achieve the result of
exercise, which will allow knowing what has been gained or lost over a period of
time. Then the accounts must be [Link] worthand finally
settle all accounts with a balance so that it results in zero.

types of closure

1-accounting closure in commercial companies: in a commercial company, the process

The accounting closing includes the following stages:

accounting adjustments

closure of the income statements

closure of the asset accounts

2-accounting closure in service companies

3-accounting closing in industrial companies.

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CONCLUSIONS

The definition of closing entry is the operation through which the

operation records of a company, to provide an overview of
equity, the company's economic situation and the results in a
determined moment in time.

The closing entry aims to equalize the balances numerically.

debtors with creditor balances or vice versa. Once the
financial statements, one of the last tasks to perform is to proceed with the closing of the
different accounting records used throughout the economic year to file them
for a certain period of time.

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BIBLIOGRAPHY
❖ [Link]
[Link]
[Link]/Frm_SIL_Detalle.aspx?
CNORMA=RC_0103199900000&CTEXTO=
virtual ups library
business advisor
intermediate accounting (pascual ayala)

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