SME Accounting: A Comprehensive Guide to PGC
Part 1. Conceptual Framework
The conceptual framework of the PGC establishes the principles and general rules for preparing and interpreting accounting information.
Part 2. Recording and Valuation Standards for SMEs
This section details the rules for recording and valuing assets, liabilities, and transactions specific to SMEs. An SME is defined as any company meeting the following criteria for two consecutive years:
- An average number of employees equal to or less than 50.
Part 3. Financial Statements
SME
Read MoreExport Potential: Product and Market Analysis
The Product and the Market in Export
Identifying a Product with Export Potential
A company must begin with a thorough understanding of its product characteristics, production capacity, and the efficiency of its production processes. It must determine if it can achieve the required quality and volume.
Finding Information on the International Market
Companies can obtain information from various sources, from personal visits to historical statistics of the target market. The main sources include:
- Public
Understanding Labor Markets: Supply, Demand, and Unemployment
Labor Market Dynamics
Work and Wages
Work, both physical and intellectual, contributes to the production of goods and services. Wages compensate workers for this contribution. In the labor market, companies demand workers, while individuals aged 16 or older (the working-age population) supply labor.
Working Population
The working population consists of people of working age who are willing and able to work. This includes both the employed and unemployed.
- Employed Population: Individuals with paid employment
Economic Imbalances & Crisis After World War I
Economic Problems After The First World War
The Rise of Fascism and the Second World War
The First World War, ending in 1918 (not 1829), had profound economic consequences, including the rise of fascism, which contributed to the Second World War. The war also led to the rise of neo-capitalism and influenced the Russian Revolution.
Inflation and the Crisis of 1929
Inflation is the sustained increase in prices over wage increases, resulting in a loss of purchasing power.
The Crisis of 1929 was influenced
Read MoreSubstitution & Income Effects, and the Role of the Bank of Spain
Substitution Effect
When the price of good X decreases, the budget line shifts, reflecting a change in relative prices. This increases the consumer’s real income. To isolate the substitution effect, we consider two assumptions:
- Focus on the change in relative prices.
- Neutralize the real income increase from the price drop of good X.
Any line parallel to line CB reflects the change in relative prices, as the slope of the budget line depends solely on them. Line LM meets this condition. Any line passing
Read MoreMacroeconomics: Equilibrium, Inflation, and Unemployment
Exogenous and Endogenous Variables
Exogenous variables are those that feed the macroeconomic model, while endogenous variables are those that the model solves for. Adjustment variables help fine-tune the model.
National Accounts
National accounts are a system of records used to calculate aggregate figures, which are the primary focus of macroeconomics.
Classical Model of Equilibrium with Full Employment
This model assumes the labor market is always at full employment. Any unemployment is considered frictional
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