The accounting policies are essential to present clear and consistent financial statements. Companies must follow the Financial Reporting Standards (NIF) to implement these policies appropriately. Below are some simple examples of accounting policies on different aspects, so that you have a general knowledge of the notes to the financial statements.
1. Accounting Policy for Inventory Valuation
Aim: Define how inventories should be valued.
Policy:
Inventories will be valued using the method FIFO (First in, first out), according to the NIF C-4The cost of inventories will include all direct acquisition and processing costs.
If the net realizable value (NRV) is less than the cost, a provision will be made for adjustment to market value, in accordance with the NIF C-4.
2. Accounting Policy for Revenue Recognition
Aim: Determine when revenue should be recognized.
Policy:
Revenue from the sale of goods is recognized when the significant risks and rewards of ownership are transferred to the buyer, generally upon physical delivery, depending on the NIF D-1.
Revenue from services will be recognized as they are provided, using the proportional method, in accordance with the NIF D-5.
3. Fixed Assets Accounting Policy
Aim: Define the treatment of fixed assets.
Policy:
The fixed assets They will be recorded at cost, which will include all expenses directly related to their acquisition. They will then be depreciated using the straight-line method over their useful life, as established by the NIF C-6.
4. Accounting Policy for Provisions
Aim: Establish when to recognize provisions.
Policy:
They will be recognized provisions when there is a present obligation and it is probable that resources will be needed to settle it, in accordance with the NIF C-9The estimate will be based on the best available judgment, considering the risks and present value of future resource outflows.
5. Accounting Policy for Tax Estimation
Aim: Establish how deferred taxes should be recognized.
Policy:
The company will recognize deferred income taxes due to temporary differences between the accounting and tax values. Taxes will be adjusted according to the tax rates that apply when these differences are reversed, following the NIF D-4.
Conclusion
The accounting policies are essential to ensure that financial statements are clear and aligned with the NIFThese examples provide basic guidance, but each company should adapt its policies to its particular circumstances to ensure transparency and accuracy in financial reporting.
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