Accounting Management Workshop: Theory to Explain in Operation of Organizations
Accounting Management Workshop (Class # 1) Friday 4 April
THEORY TO EXPLAIN IN OPERATION OF ORGANIZATIONS
1 .. GENERAL THEORY OF SYSTEMS focuses on the concept of system and says it is a set of interrelated elements that have a common goal
SYSTEM ELEMENT
Every system has inputs and outputs:
Input Output
In put Out put PROCESS
· · Wood – Furniture
· Varnish – utilities
· ·Fundraising
· · Human Resources
The furniture comes out of these elements exist in any system but there is a process
Closed and open systems.
CLASSIFICATION SYSTEMS
1) OPEN: change of energy with their surroundings
CLOSED: there is a relationship or exchange with the environment
· · A system operates through its relationship with the environment
Tickets outlets
In put Out put PROCESS
Feedback or feedback
Feedback is a process of learning or self-correcting mechanism, where the systems may change their behavior from the impact they have on their surroundings.
Example: several people talking and one is medium coarse and realizes that others do not embrace their rudeness so for the next time or at that moment will change their behavior because it is being rejected by the media and here there is a feedback system.
The system sees that the outputs are coming out negative and detrimental to creating an environment so this is going to change the process.
From the point of view of organizations, continuing the example of the furniture. If the furniture out of business not buy one company will want to know that so it’s going to make a study of this and the problem may lie in their discomfort, price structure, etc.., Then the company will perceive that their clients are not receiving the product of the company and most likely to change the system may buy better quality wood, switch to designers.
SYSTEMS CHARACTERISTICS
1 .. capacity for self-determination: it means that the systems generate mechanisms of self-organization and self-control. For example, this self-organization is reflected in the division of labor, specialize to systems that have specialties.
2 .. The synergy: this has to do with the system as a continuum, and a system is not the simple sum of its parts, if not to something higher. A very typical example of this concept is when they say no such function as such if it works as a team, may have mid-level players but it does interrelationship of the sum of its parts. The systems achieve the level of development thanks to the sum of its parts.
3 .. The recursionHe says that a system can be completely independent and coherent in itself but is located within other systems or even if it contains other systems.
4 .. The entropy: it is a feature of all systems that tells us that every system naturally tends to the destruction, death. We could say that all systems tend to disorganization. Eg if for some reason the teacher is standing in front a couple of months pass it is more likely that when we come to see is this dead, this is a natural tendency, the same happens when an organization is shaped So there’s static or megantropía negative entropy which is precisely what makes the systems governing their behavior and make the systems work well, grow (survival instinct). When we go to a company and is not serving us well and the role they need to solve their problems and that the computer system goes down every 5 minutes, we realize that is a clear synonym of entropy.
5 .. Homeostasis: This is a system of self, then we could say that the systems tend to maintain a basic character trying to control all external factors threatening, for example, we perspire to maintain certain basic levels of temperature is the heat which threatens us, if a company we have strong competition in the environment we will have a menacing about you so that employees will be trained to compete as equals. Are internal regulatory mechanisms of the system.
6 .. Differentiation: the tendency of systems to the specialization of functions.
7 .. equifinality: it says that in a system there are many ways to achieve the same end. This feature could be expressed as all roads lead to Rome.
Class # 2 Friday, April 11
1 job: to expose on Friday 25 April.
Choose a company which has access to the field and bring the matter you saw in class.
1)) which consists in a company (define)
2) Explain the concept seen in class.
3) As we apply this concept in the company.
Topic: Feedback is a process of learning or self-correcting mechanism in which the systems can improve their behavior from the impact they have on their surroundings.
Some argue that management is a technique, a science, an act or a combination of everything. But beyond that if we place the administration in one of this concepts, the important thing is that it will inevitably occur within the concepts of efficiency and effectiveness.
Efficiency: we talk in the media background, resources, a good use thereof. The company is efficient to the extent that the work you do so in the lower cost, good use of resources.
Effectiveness: has to do with the purposes, objectives of the company.
Both concepts are linked, we must achieve the ends with the proper use of resources and means. We must be effective and must also be efficient, there is absolute respect, for when one is administering what is wanted is to meet targets efficiently.
The administration itself has for many years and can say that like any science, art, art as we now know as the administration is through experience. Systematic knowledge, however, the administration recently emerged in the last century, then as a way to have an element of look will provide a history of administration:
There are some schools, one of which is classical in its scientific studies of a case in that regard man as an absolutely rational and the organization where management is given as an entity that exists in itself without better relationship with their environment. The Pipal exponents among others are: Max Drink and Don Frederic Taylor. Drinking is a German sociologist, originator of the concept of bureaucracy and argues that the bureaucracy is a form of human organization.
The classical school is characterized by three elements:
1)) formative element: There is always the No. in the organization
2) What rational means that human beings always act logically
3) Mechanistic: that by following certain procedures we are able to achieve what is sought.
Ultimately the administration is to manage people and this is solved dictating N ° s procedures in order that people respect it.
The administration is given in this period of history since it stems from the Industrial Revolution the concept of organization, but before that there was nothing more than individual work.
Free Tai in 1811 published a book called principle of scientific management, then argued that the goal of management was to maximize the level of prosperity for workers ast and for employers, he is an engineer at the time viewed that there was N ° s no rules for work so he thinks he should rule because he says will be better and starting to study motion and time that is to observe, study, organize the work of people increasing their efficiency, was a mechanistic view of the work. Today these concepts are inapplicable. Ultimately Taylor proposes 4 principles that are specific for and are:
a)) should be a scientific study of the working methods so as to set standards.
b) That the workers should be scientifically selected according to their attitudes to work are required of them.
c) The application of scientific methods.
d) Harmonization and coordination between workers and leaders.
The widely used scientific method, then it was measurable and that reality develops this school.
Another exponent of this school is a Frenchman named Henry fallol? who in 1916 published the book industry and general administration and he’s publication shows that the administration should be taught as a discipline to all areas of life. His contributions, some force, are:
a)) classifies the activities or operations of any company and says there: 1) technical activities (related to what is synonymous with the production or production), 2) commercial activities (all that is buying and selling any company), 3) Financial (refers to what is obtaining and managing the capital), 4) security activities(there must be protection for people and property business), 5) accounting activities (inventory, balance sheets, costs), 6) management activity.
a)) In what is the administration’s activities in turn makes a sub that is known today as the administrative process: 1) Provide (anticipate what’s to come for the company) 2) Organization (create organs to within the company and assign duties, authority and responsibility) 3) Send (exercise authority), 4) Coordinate (harmonizing the efforts of people in the business), 5)Check (check or verify that it has complied magazine)
Class # 3 Friday, April 18
This contribution not only to get his time there he established the principles that there should be administrative, such as mention what it is: 1) The division of labor (that is separation of the roles and responsibilities to improve the utilization of resources): 2) Principle of unity of command (which a worker should be addressed only by a head), 3) Principle of the discipline (remember that they were in a very mechanistic making it a key element in this reality) 4) Principle of the compensation (must pay the worker for his support in the company); 5)The subordination of individual interest to general interest (which is reflected in our constitution which is the administrative probity), other principles are: Principle of the hierarchy principle of equity, principle of order; principle of stability of staff; Principle management unit; principle of decentralization.
Fallol speak of the linear address is an organization in which predominates the control and influence of a man (head) over another command strong relationship, based on the principle of unity of command. Argues that through the pyramid hierarchy should rise and spread information, respecting the chain of command (has to follow the chain of command). It is a fairly rigid structure.
Advantages
1) Strengthening the development of the discipline
2) It allows clear lines of responsibility
3) an organizational model is very simple, very easy to understand
Disadvantages
1)) there is an exaggerated importance to the authority.
2) There are a lot of responsibility in a few heads
3) the absence of a chief specialist should be aware of many subjects, making it difficult to work and eventual replacement of the head.
Another author who made great contributions is Max Beber, became concerned within organizations that call for and authority relations, said that the structure of authority allows a score of organizations and wondered: Why people obey orders? And that leads to a distinction between power and authority.
Power: the ability to compel obedience.
Authority: is the ability to voluntarily enforce orders
Therefore in a system of authority, he says that people follow orders that they consider legitimate.
Max Weber from this analysis makes a classification of organizations:
1)) charismatic organizations: those in which the authority or power emanates from the characteristics, its leader’s personal. Drinking is these organizations as having the advantage of gathering the people who directs and disadvantage is related with the problem posed to replace such leaders.
2) Traditional organizations: As the name suggests these organizations are based on tradition, customs, for example here are the companies that are formed by families.
3) rational-legal organizations: Also known as bureaucracy and hence arises the concept of bureaucracy, which puts no drinking in pejorative terms like today if that is known as a kind of special organization.
This form of organization he says is rational because they are specifically chosen means of achieving the specific objectives of the organization says is legal because the authority is expressed or exercised by or with the help of rules or procedures.
This type of organization has 4 features that are very distinctive:
a) There is a clear division of labor
b) A clearly defined hierarchy, so I have as chief officials in charge that they only meet mio mi.
c) It is well-defined rules and procedures.
d) Relations impersonal (the paste I’m not here to make friends), that brings us to begin a school which is the people.
Abraham Maslow says that there was hierarchy of needs:
1) Putting the most basic and physiological (minimum conditions that must be given to employees),
2) Security,
3) The love, esteem (as full of affection and feel appreciated by their bosses)
4) Self-actualization
At the time there are two schools that are more modern: the theory of school decisions and business strategies.
Planning as a process
It is a tool through which organizations provide what they do in the future.
The advantages of planning:
“It helps us define how to achieve this goal.
“It gives us control
“We provided the allocation of resources.
Vision:
It is the dream that have managers and guiding the company into the future.
Mission:
The primary purpose and values, by which workers strive
Values must be spelled out and these guides action. This is developed in a participatory process of the organization.
SWOT analysis
Mission: Internal Analysis
External Analysis
There are circumstances that will condition the mission:
Threats: competitors and also the law.
Opportunity: law
Internal analysis
Strengths: highly qualified staff, good image
Weakness: outdated technology as well as borrowing
Class 4
Strategy formulation
Hierarchical levels of strategy:
The corporate level:
1) strategies that include the organization as a whole. This activity is not reasonable to delegate.
2) levels of organization (or enterprise level)
The strategy should be defined by business areas
All companies must be guided by the corporate level.
Functional level:
The funeral levels regarding resource allocation.
Just business and corporate level.
Competitive Strategies:
Means that the company addresses the external scenario:
Cost Leadership: Based on the cost
Of differentiation is distinguished by a feature that makes it different.
High segmentation: is related to the field.
Execution and implementation of the strategy
1)) is formulated strategy
2) implementing the strategy
3) evaluates the results of monitoring.
Evaluation or control:
management-control is a process in which the payment is made in the organization.
-the goals are measurable objectives.
-Correct the deviations detected
What are the most common problems of strategic planning?
· · There is no support from senior management of the company.
· ·
· · Discrepancies between ends and means, that it is allocated the necessary resources.
· ·
· ·
· · Competing Interests with external audiences.
· ·
· • The lack of understanding or knowledge of the strategy within the
· · Company.
·
· · Interest inside the organization that are opposed to external interests, relating to the company.
Class 5
Administrative process: it has different stages that are created simultaneously.
Planning: anticipating future, we are expert as a rational way forward, everything is planned.
Example: a party.
ORGANIZATION
In discussing this we mean the process of forming the structure of organization (organizational structure) is the formal distribution of posts in the organization and with this purpose we:
1.dividir work tasks and organizational units.
2.asignar responsibilities and tasks. (answers are assigned according to the charges)
3.coordinación means that for example I could not have meat without coal.
4.agrupar responsibilities in organizational units.
5.definir relations formal lines of authority and therefore (all must pay online hierarchical).
6.distribuir resources efficiently used in the organization.
All that we talked to said relationship and organization. There is a mode called organizational design and within this are the following:
1 .. specialization of labor (smiht) is that when there are organizational design to see where this expertise and making work more efficiently. For those specialists in a particular role.
This concept at the beginning of the administration was very important, specialization means increased productivity, efficient work (positive perspective).
The negative element of specialization, respect for people who do the work is that the second person is being all day the same will generate professional frustration (example: a lawyer who delivers file) is motivation, fatigue, accidents, because if a person does the same thing many times he only thought that makes it automatically.
This concept from the theoretical point of view is very effective but taken to extremes is very negative.
Negative elements in the individual, also affects the company, there are consequences (stress, sick, accident)
CHAIN OF COMMAND
This is nothing but the line of authority that extends foral organizational levels, from the highest to the lowest and defines who reports to whom.
Concept of chain of command:
Authority: that the chief duty of giving orders to his subordinates and expect them comply with them, associated with the concept of authority is linked to accountability is the obligation placed on a head, an employee for making and carrying out the work to be assigned therefore be concluded that the authority makes sense for responsibility (responsibility without authority is meaningless)
Principle of unity of command: it is not simply the obligation to respond to the chief empleadote.
Extent of control: this linked to the ability of a leader to lead efficiently and effectively to a group of subordinates, is associated with the number of employees that can handle.
The more subordinates under me I’m more efficient and vice versa
Example: a person who is capable of controlling up to 4 persons and one that is capable of controlling 8, will obviously be more efficient the second.
Closeness or distance from the subject: the relationship between the distance within the chain of command, such as branches. This refers to that is favorable to have direct contact with workers.
Level of knowledge or expertise of workers: the good news is that there are skilled workers in certain matters, the trouble is causing monotony.
Organizational culture of the company: this corresponds to the type and firm, ie whether or not it is paternalistic.
Centralization and decentralization: the degree to which concentrated on one point the lack of decisions.
Departmentalization
It is when I have some expertise to group them into departments.
Criteria:
a) functional departmentalization: it tells us that departmentalization used by functions (production, finance, HR)
b) Product departmentalization: depending on the company’s products (yogurt, milk)
c) geographical departmentalization: according to the territorial distribution of the company
d) Process departmentalization: according to process flows.
e) Customer departmentalization: according to the type of clients with the company, for example, VTR offers various services and the type of client you have to meet various departments.
DRAWING
Form is defined as the way to work. Degree of freedom to do the job within the organization
In defining the organizations we talk about formal lines.
Organization informal set of relationships or interactions that occur between members of the organization and those that are not established informal relationships.
The authority and responsibility are defined for the post not the person and organization design are the charges on the argos but there is another organization that has nothing to do with the charges but with people on a link that is given by the channel informal, are bonding and are very important, one does not forget or regret to weigh the formal organization.
Elements that contribute to forming the informal organization
2) structure of friendship
3) power structure, ie nose regard to this, as there are sources of power inside the organization.
Contribute to power
1))knowledge: eg John has a clear tax law and skips the regular channels, leading to who really knows
2) Carisma
3) Information management
4) Decision making (decision-making capacity)
Class 6: May 23
There is a mistaken idea that human resource management is based solely on human resource management, but this is wrong because people are responsible for all the bosses in each organizational unit of the company, always must have a vision about what we think should be done in the area.
The planning of the area of human resources is not a simple issue and to consider any aspect when we are in the human resources function in the company, if we take a systemic to the human resources function we find that there is a great human resource system and other subsystems such as: recruitment, selection, welfare, remuneration and development, then when you are facing the human resources function is always a firm is essentially two areas:
1)) or operational area. What is done here is to manage all contracts, training, payment of wages, holidays, layoffs, family, etc.. An entire function associated with the daily work.
2) Area of Human Resource Management: relates to the way the company carries out its functions.
The aim of the recruitment system, seeks to engage the organization the most qualified candidates to fill the vacancies of the company and the mechanisms used for this are:
a)) notices in the press
b) Some companies are close to centers of education.
c) Through the Web portal company, in this sense is important to note that we are recruiting people Cuado ara company we must always bear in mind the domestic market, both in terms of supply and demand to know that we’re offering an idea attractive
A second subsystem of the human resources area is the selection, once recruited the right people for these stakeholders must be selected to select must be present:
1)) Be clear what are the profiles we have to know what kind of professional staff is what we require, consequently develops mechanisms for selecting this profile.
2) Have assessment mechanisms which are based on the profile and the type of officer I want to hire
3) Involvement of the headquarters unit of the office to be filled, this means that the administration takes place in a transversal way, then when you select the head of the vacant unit should have input into the process so that this rule and engage in the performance of the chosen person.
4) Inductionis a short program of awareness of new staff, which means that it is common for companies to be in large systems of recruitment then then the person chosen is asked
Nivelesde Remuneration should reflect responsibility and productivity in the enterprise, and here again becomes important what was mentioned regarding the recruitment, that is, be clear about the level of earnings in respect of competition.
Performance evaluation or grading system is intended to measure which has been the standard in terms of work, the performance of staff in a period of time in the company and which should therefore be the consequence. In the area of human resources that will always be present for registration or administrative matters. If the company has a level of 100 and we have Juan in 100, Peter 90, Diego 80 and among these 3 there are gaps in what clearly is a signal and what we might expect from a good human resource management is punishing such who has less than 100% as the gap gives me a sign about how I should act with the staff, you can also occur in which the company does not give you the tools necessary to develop so this would be a feedback system training system.
The factors evaluated, when we discuss the selection of staff have a profile which clearly states what we expect from the person taking office because he could not demand the same to a doorman to a lawyer, for example: hour. Then when we evaluaos performance we should do about the factors that are unique to the charge that we are evaluating
Training is that employees need to be trained and the systems evaluators should be trained to do their jobs as the company you want:
1)) traditional system: it is thought the note should be built according to these actors, for example: quality, quantity of work, obedience, etc.. Here is the boss who assesses
2) performance evaluation system. I mean the beginning of period what is done is to define certain goals with employees and their end to verify whether these were met. This is going to be depending on the outcome. We evaluated the chief in terms of goals
3) Evaluation System 360 system: it says a relationship that is similar to the traditional but here evaluated bosses, peers, subordinates and sometimes even customers
Another subsystem that is linked to the issue of human resources is and of social or welfare benefits, this is related to union business. From the point of view of management will always be the issue. Prevention.
Development when it comes to this refers primarily to the roads or to advance within the organization, or move both horizontally and vertically, and the company regarding this should be clear so that employees know how to develop, how to prepare, untying is when staff members leave the company belonging to the organization and here again is to link the development system with the disengagement and that when we have employees who are completing their workforce are not always prepared for the stress it produces then companies develop skills for decoupling, in which he was taught a trade which will not only have an impact on your employee will also be among his colleagues, working climate, the environment
A second type of training is nothing which is more than spiritual or psychological, are hired psychologists to understand this process from working life to the peaceful.
On the issue of development one can move both vertically and horizontally, when a promotion is vertical and horizontal rotation, the businesses generally are rotation and this is why:
1)) Type of control: since you can have a person every day promoting supplier, which can be bribed with rotated so not to create bonds of friendship
2) Item motivational because when the work becomes routine demotivate employees
3) The multifunctional employees which means that when I am in a unit that is healthy for everyone to know all that nobody is indispensable, therefore it is good to rotate because of the absence of one who knows no other work.
CLASS 7
Second test June 13.
Third Test (recovery) and work. June 20th.
May 30, 2008
TRAINING
1.-Specific Training
Training for specific roles.
2.-Training for change
That is, incorporation of new technologies. Often workers can bring replacements for machinery.
3 Training for the Advancement
Eg the manager welcomes retreat, and begins within the company searching for a replacement manager. (Competition). To do so applicants must be trained
4.-Training for decoupling
In some companies are trained ifyou the person leaves the company (Retirement). This training is to learn trades. As of plumber, carpenter etc …. It also enables them to emotionally and psychologically.
Currently, the company not only has the responsibility to conduct training, but workers should be the concern of car train with a proactive attitude.
The aim is to deliver training tools within the enterprise. This ideal is to have mechanisms for evaluating training.
A basic level, which is related to assess whether the conditions for conducting basic training (training is being done) Check if the profession is, schedules are met … and so on.
A second level is about content. Bone, measurement of the acquisition of knowledge, skills, abilities and skills.
A third level, is related to the employee has changed his job performance.
Management model competition
It’s a way of employee performance in a given context.
Not only are included, the knowledge and skills, but also include motivation, personality, relationships, etc ….
Behavioral Competencies are those characteristics that emanate from the person and who are behind it. Ex: Motivation, empathy, commitment.
Technical competencies are specific to each charge, are those skills to perform effectively in operational terms in office
Knowledge, those that are only developed through knowledge.
In other words … .. NOT TO HAVE NOTHING TAKES THE TREMENDOUS CURRICULUM IF NO GOOD PERFORMANCE IN THE STICK.
Performance criteria, through which competition occurs. Ex Competition teamwork of a lawyer is when you share knowledge.
Working For June 20th.
Go to a company, interview a worker. Ask that your job is and do the following form:
Position: Secretary
Define and explain:
-3 Behavioral competencies: user-Care
—
-3 Skills. File Management.
-Managing computer.
_Conocimientos Needed for the job
-Knowledge of rules
COMMUNICATION
The communication is the transfer and understanding of meanings.
Elprim element is the transfer. If I write a book and nobody reads it.
The understanding, it means that if I write in Chinese, no one will understand.
The 3rd element is that the meaning makes sense.
Good communication is to understand the message. Not agree with the message.
The first function of the communication is CONTROL.
The second is MOTIVATION.
The third is emotional expression.
The fourth is the INFORMATION
To be effective the message is the ATTITUDE
And the values and sociocultural
“The barriers to effective communication
1.-filtering, deliberate manipulation of information. (the boss hears what he wants to hear)
2.-The emotions, influences how you give and / or receives information.
3.-Information overload. Superior information that a person can process.
4 .- defensiveness, not only not heard, but also the feedback is not done efficiently.
5 – Appropriate Language.
6 .- Cultures.
Control.
It is planned that the verification has been completed and has been performed.
It follows from this definition that the control has no meaning unless there is no planning.
Ante control
Example: Control of legality
The taking of reason, on the constitutionality of acts.
Concurrent Control
Control takes place when the act is done to control.
Visual inspection. Upon completion of the work.
Subsequent verification
Control takes place after the event was held, it is verified whether the conditions and procedure was correct.
Another classification of control-we can make based on who performs the control.
External Control. What makes a person outside the institution
Eg external audit, supervision, Controller General
Internal Control.
Is performed within the company.
Audit
Q examination or review is performed at a specific position to verify your membership level parameters. This leads to a report attached to satisfy the information needs of enterprise users.
Finding. Change is detected between reality and preset parameters
Criterion. See if relevant (eg, the lawyer for the differences in contracts)
Observations and Recommendations.
Next class …. ACCOUNTING!
Class 8
06.06.08
In an audit we have 3 elements:
· • The auditor
· • The audited entity
· A third party involved in the audit report
* These elements are always found them.
Ente AuditadoAuditor (external company. Going to have an impartial and objective)
Third (are the owners or shareholders of the company)
Eg internal audit. The internal audit unit performs an audit of financial management. 
Reality set auditamosParámetros
Findings
Observations
Recommendations (say it is wrong)
· · When we find difference between reality and the parameters set, there is a finding. The findings may be relevant or not (eg if there is a difference of $ 2 or $ 700,000)
• A serious audit, you should never say How to troubleshoot the problem because it would become a consultancy, should just say what you have to fix (never like to do).
· ·
· ·
·
· Accounting and Information System
· · Every system has inputs and outputs.
· Process
·
·
· • Inputs Outputs
· Accounting Report
· Statement
· § The information is processed based on the doctrinal and formal elements.
· Accounting function: Basically is to record economic events occurring in the company.
· Objective: is to provide information for decision making.
• Inputs: the torches are cheap (payments, contracts, etc.).
When entering an economic fact that is processed, the doctrinal and formal elements can be processed. This allows outputs such as reports that have accounting and financial inflows.
– Accounting Reports: Any kind of report that calls for the manager to the accounting unit. They are not rationed.
– Financial: Reports are rules, these are:
· · Balance Sheet
· Income Statement
· Cash flow statement
· Notes to financial statement
· Opinion or report of the independent external auditors.
· · The last two are only supplementary reports from the first three, are not financial statements
· · When we say that accounting is quality?
· Going to be of quality as that represents as faithfully as possible the financial economic reality of the company, and to the extent that a flexibility that allows quick and timely feedback.
·
·
· Users
· – Internal Users: Administrative requiring accounting. Belong to the company and make decisions within it, require the information, no formal requirements.
· – External Users: Usually the third party not required by the administration of the company.
·-External Users:
· – Customers (when they need that a company provides long-term or those who carry out maintenance)
· – Investors
· – Banks and creditors generally
· – Treasury and Government (SII and superintendence)
· – Shareholders or owners
· – Workers (because they have bonuses, and if they see that the company has utilities can negotiate, not if the company will break)
· Financial Statements
· Balance Sheet: This is a list or inventory of goods or assets and obligations or liabilities at a given date. It is a company’s financial picture taken in an instant of time.
· Assets:
·-Wide concept: they are resources or rights that have the potential to generate future resources.
·-Concept Accountant: are resources owned by the company that have the potential to generate future economic benefits, cuto value can be measured with reasonable accuracy.
· Elements emanating from the concept:
· – Company Owned
· – The potential to generate future economic benefits
· – The benefit can be measured with reasonable accuracy.
· Balance Sheet
· · Assets: are classified as:
· · – Assets circular
· – Fixed Assets
· – Other assets
· · Liabilities:
– Liabilities circular
– Long-term Liabilities
– Heritage:
– Capital
– Retained earnings
Assets:
Circular-Assets: all those whose benefits are expected to receive in a period no longer than 1 year from the balance sheet date.
-Fixed Assets: all those bins of physical origin whose benefits are expected to receive in a period longer than 1 year from the balance sheet date. They are assets acquired by the company with the purpose of exploiting long time.
– Other Assets: those not previously classified.
Liabilities:
General concept: it is an obligation to third
Accounting concept: it is an obligation of the company towards third parties not owners of cash, goods or services reasonably possible to quantify in a reasonably defined future benefits previously received.
-Current liabilities: includes all those obligations which the payment or settlement of which will occur within 1 year from the balance sheet date. Eg, salaries, accounts.
“Long-term liabilities: Obligations with maturity exceeding one year from the balance sheet date
Heritage: rights as the shareholders or owners of the company on the differences between assets and liabilities. It comprises:
· · Capital: represents the cash contribution made by the owners for the right to manage the business and the right to the result of management (the right to profit)
· · Retained earnings: represents that part of the profits that the company has achieved since its inception to date balance sheet and have remained there as a rollover.