Introduction In accounting, amortization is the process by which the cost of an intangible asset is systematically and periodically recognized over its useful life. Its objective is to reflect in the financial statements the wear and tear or consumption of the assets.
Introduction Modern accounting is based on a fundamental principle: double-entry accounting. This concept, which originated in the work of Friar Luca Pacioli in 1494, establishes that every economic transaction has a double effect on a company's accounting records.
Introduction The way an entity records its accounting transactions can significantly alter its financial position. In Mexico, NIF establishes that the accrual basis of accounting should be used; however, many small businesses...
Introduction Accrual is one of the most important accounting principles, as it establishes how the effects of transactions, internal changes, and other economic events affecting an entity should be recognized. In Mexico, this criterion is...
Introduction In the Mexican accounting world, the Mexican Financial Reporting Standards Council (CINIF) is the standard-setting institution. It is the independent body that issues the Financial Reporting Standards (NIF), which guarantee the...
