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The document provides an overview of Financial Reporting Standards (FRS) in Mexico. FRS are composed of basic postulates that guide accounting systems and regulate financial statement preparation and presentation. They are organized into three series: Series A establishes the conceptual framework and general standards. Series B covers standards applicable to financial statements as a whole, such as income statements and cash flow statements. Series C addresses specific financial statement line items in detail, such as cash, receivables, property and investments. The FRS aim to structure accounting theory and provide consistency in financial information reporting.

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24 views

PDF Contabilidad

The document provides an overview of Financial Reporting Standards (FRS) in Mexico. FRS are composed of basic postulates that guide accounting systems and regulate financial statement preparation and presentation. They are organized into three series: Series A establishes the conceptual framework and general standards. Series B covers standards applicable to financial statements as a whole, such as income statements and cash flow statements. Series C addresses specific financial statement line items in detail, such as cash, receivables, property and investments. The FRS aim to structure accounting theory and provide consistency in financial information reporting.

Uploaded by

Itzel Morales Garcia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Financial Reporting Standards - SERIES A


Financial Reporting Standards (FRS) are a set of general concepts and specific standards
that regulate the presentation and preparation of the information included in the financial
statements of an entity.

The purpose of these standards is to structure the accounting theory, establishing the limits
and operating conditions of such information system. In addition, they serve as a regulatory
framework for the issuance of financial statements, making the process of preparation and
presentation of financial information more efficient, thus avoiding or reducing
discrepancies in criteria that may result in substantial differences in the data presented.

Structure of the FRS (A1)

The purpose of this introductory standard is to define the structure of financial reporting
standards and to establish the approach on which the conceptual and specific standards are
pronounced.

Basic postulates (A-2)

The Financial Reporting Standards are composed of eight basic postulates, which will
guide the operation of the accounting information system. These principles are as follows:

User needs and objectives of financial information (NIF A-3)

This standard describes the two main entities that may need to use the FRS in order to
generate useful information for any user. These are: for-profit entity; not-for-profit entity
and general user.
Qualitative characteristics of financial information (NIF A-4)

In order for financial information to provide users with the necessary tools, it must have the
following characteristics:

ce the economic decision-making of


those who use it.

differences and similarities with the information of


the same entity and with that of other entities.

Basic Elements of Financial Statements (A-5)

The general objective of this Standard is that financial information should be useful for
decision making by a wide range of users interested in the entity's information; therefore,
this information should be presented in the form of financial statements.

Recognition and valuation (A-6)

The main objective of this standard is to establish the general criteria for valuation,
understanding valuation as the monetary quantification of transactions that are recognized
as Assets, Liabilities and/or Equity in the entity's accounting information system; initial
recognition, which occurs when a transaction is incorporated for the first time in the
financial information when it is considered as accrued; and subsequent recognition, which
occurs in a transaction subsequent to initial recognition that modifies the value of Assets,
Liabilities and Equity.

Presentation and disclosure (A-7)

Financial reporting refers to the way in which the effects of transactions, internal
transformations and other events that economically affect an entity are adequately disclosed
in the financial statements and their notes.

It involves a process of analysis, interpretation, simplification, abstraction and grouping of


information from the financial statements, so that they are useful in the decision making
process of the users in general.
Supplementation (A-8)

In order to explain the purpose of this standard, we must first define the meaning of
supplementary. This term is applied when a group of standards is used that are not the ones
used in the

Financial Reporting Standards, but which nevertheless comply with the same presentation
requirements. Other types of standards that can be used are: IFRS

(International Financial Reporting Standards); and IAS (International Accounting


Standards).

Accounting). The objective of this Standard is to establish the basis for the supplementary
application of this standard to

IFRS, considering that in doing so, information is prepared based on them.

Financial Reporting Standards - SERIES B


In the B series it goes more into particular terms, such as the explanation of what is to be
carried out in the A series and the rules to be followed. These are the standards that are
applicable to the financial statements as a whole.

An example is how to generate the financial structures of the entities, ranging from the
comprehensive income statement, the cash flow statement, financial information by
segments, effects of inflation and the financial statement in which the company is located.

It has a total of 17 items to consider and it is important to understand the company's


economy and thanks to this series it will be very easy to understand its economic situation
since it goes into its financial structures.

In addition to knowing how data on capital, earnings, cash flow, assets, stockholders' equity
and liabilities are presented, as well as changes in stockholders' equity showing the final
balances contributed, earned and movements.

On the other hand, if the entity acquires or combines with another company, this FRS states
that it is necessary to refer to the purchase and merger with two or more entities that remain
under the same control, where the company that carries it out is the acquirer, this standard
establishes the preparation and presentation of the financial statements of an acquired or
subsidized entity that belongs to the same owner, among other standards.
Financial Reporting Standards - SERIES C
Series C deals with quite specific concepts of the financial statements, including aspects
that are not clearly perceived in the statements, although they are part of them, and that this
series is in charge of describing more specifically these items that become complex in the
understanding of the financial information.

Concepts ranging from cash, accounts receivable, property, plant, equipment, inventories
and investments. It is a very extensive series with an endless number of sets of standards
ranging from NIF C-1 to C-21 so that the financial information being presented can be
understood, touching on topics in more detail, as we mentioned, it goes from the general to
the most particular.

In this section we will find concepts such as: investments in financial instruments,
inventories, prepayments, investments in associates, joint ventures, permanent investments,
investments in associates, joint ventures and permanent investments, transfer, derecognition
of assets and others that are presented.

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