Texto 1

The function of finance

Written by venancio aguilar maldonado

February 25, 2015

In the business world, decisions are made that have to do with what goes with investing and where these resources
will be obtained according to Ortega A. (2002), of which he mentions some important points; accounting, law and
economics try to optimize the management of resources and materials in such a way that does not affect the
company's finances. On the other hand Garay and González (2005) mentions the financial theory that consists of a
set of quantitative models that allow to optimize resources in an efficient way, the finances are occupied in the
institutions, the markets and are reflected in the financial statements to see if it is feasible . According to Arthur
Stone Dewing, finance is based on a positive methodology, placing greater emphasis on external legal and
institutional aspects as well as exceptional processes for companies such as bankruptcies, functions and
consolidations.

At the end of the 50s, new mathematical models were incorporated, as well as new methods and techniques were
created to select investment projects, but with the advent of the computer, information began to be disseminated
for decision making in financial administration. In the decade of the 60s the theory of the portfolio is included which
explains that in a market there are two types of risks: the deferrable one; that can be controlled and the systematic,
which can not cover that consists of many different titles and with little correlation between them. During the 1970s,
the pricing model of capital assets was perfected. In 1976, the study of agency theory began, the political movement
of consumers who wanted low-cost and high-quality products in order to satisfy their needs.

The financial administration is related to the accounting since it provides the information through the financial
statements such as: the balance sheet, the statement of results and balance of verification so they are of greater
importance, likewise the financial administration has relation With the economy due to the incorporation of ideas
originated in economic theory, the financial administrator must know the economic framework and be alert of the
changing levels of economic activity and the changes that may be generated within it economic policy, the analysis
of supply and demand, maximization of profits and price theory these principles are applied in the financial
administration which decisions must be adopted. In macroeconomics the financial administrator must be aware of
the institutional system in which he / she works within it is the different economic activities and political changes, all
this in order to obtain financial from the company. Microeconomics efficiently deals with operations, supply and
demand, maximization of profits, risk measurement, determination of the value of the company in which it provides
evaluation, planning and control techniques necessary to achieve the company's objectives.

The objective of financial manager must be focused on the objectives pursued by the company, according to the
main functions that are taken in the direction of finance should be taken into account the sources of resources, as
well as the different applications that should be given to these resources, at the moment of making decisions,
several external factors will be taken into account: consumers act according to their needs and priorities; fiscal policy
refers to the government's plans for budgeted investment.
Texto 2

The notes to the financial statements according to the IFRS for SMEs

Written by Michael Aular

4 September 2013

The users of the financial statements use the same to make decisions of different nature, as well as to evaluate the
management and situation of the entity; that is why it is not enough to have the final figures presented in the
financial statements but also explanations, details, professional judgment, accounting policies, estimates and any
other information useful to the reader.

I have met many managers who, as readers, are interested and find it extremely useful to know about the estimates
and other judgments used in applying accounting policies. These disclosures, for example, allow users of financial
statements to better understand how apply the accounting policies, as well as making comparisons between entities
with respect to the foundations on which management makes such judgments and be more involved and safe of the
information presented.

As managers we know that the ideal is to have quantitative and qualitative information to be able to form an opinion
and decision making as accurate as possible, this is well understood by the IASB and gives the rank (let's say it) to the
notes of the states financial conditions that it deserves by placing it in line with the financial statements presented.

In the IFRS for SMEs, this topic is discussed in section 8, which states that the notes contain information additional to
that presented in the statement of financial position, income statement and accumulated earnings or
comprehensive (if presented), the statement of changes in the patrimony of cash flows. They provide narrative
descriptions or disaggregations of items presented in those states as well as information on items that do not meet
the conditions to be recognized in them, something to be clarified and made clear is the fact that in addition to the
requirements of section 8, almost all other sections of the Standard require disclosures that are normally presented
in the notes.

The notes to the financial statements must have a structure, this is:

• Basis of preparation and accounting policies

• Information required by the standard in each section

• Additional information that is relevant for understanding the financial statements.

The presenter of the financial information will ensure that as far as possible the notes are systematic, counting with
their related reference number, as to the order should be the first declaration of the fact of being fully complying
with this international standard, the summary of the significant policies, information of support of the presented
games and of last any other information that is considered relevant and of great help for the users.

In the notes we usually get before the declaration of compliance with the standard the general information of the
entity such as its address, registered office, legal form, country of incorporation, description of the nature of its
operations and main activities, the date of authorization of the financial statements for publication and who has
granted such authorization all this will help the reader to understand the entity even more.

The financial information should be as comprehensible as possible, and in this fact the notes are a fundamental part,
they are to facilitate the effective communication of information in the financial statements, the managers are very
grateful for the details and the additional relevant information that helps a better understanding, remember that the
information presented is for a wide range of users and as such we should strive to present it as understandable and
useful as possible.
Texto 3

The importance of accounting in companies

Written by Alma Delia Paz Hernandez

December 5, 2012

By: Alma Delia Paz Hernández

Introduction: Why is accounting important in a company?

In order for a company to have good financing in its accounts and financial record in general, it must have controlled
a multitude of activities and records that guarantee its stability and continuity. It is, precisely, through accounting
that highlights one of the most important, the accounting of the company, one of the most important and necessary
in any business model.

When we talk about accounting in a company we refer to the techniques used to collect all the accounting
movements that this takes place. Thanks to the review and study of the data, it is possible to implement control
models and reach decision making in the company.

Accounting is an important source of information for the company and within the infinite advantages that its
application in the business world brings.

Thanks to it, we can know at any time how many are the exact amounts that we owe and which are the ones that
owe us. In addition, it allows you to differentiate the expenses created by the owners over those generated by your
own businesses, its study and application alert us of the general expenses and the investments made, it helps us to
know the production cost of a specific service or product allowing us to find out the price for which I should sell.