Accounting Through Time

Accounting in the time        

Carlos Gonzales.

First of all, we must define what is accounting in terms of general studies, accounting is the science that is responsible for measuring and analyzing economic reality in order to facilitate control of the economy though information.

In accounting, transactions and internal changes are recorded, therefore the purpose of accounting is to give information of an economic situation in a period of time to be able to make purchasing, leasing decisions or any financial issue that can be analyzed.

An example of how we can see the issue of accounting over time and its effects, for example the accounting reform of the Spanish local administration, this will see some critical reflections on the new accounting instructions.

To carry out this reform, research was done as any other study, this was based on objectives, design, methodology, approach, results, limitations of research and the implications.

What can be summed up on this great example on the accounting reform in Spain one can say the following: first it was analyzed from a perspective criticism the reform of accounting in Spain, this was carried out analyzing in the weakest points in what is refers the country’s economic system.

For the design of the accounting reform was divided into three parts, which entails three different approaches and therefore in the results is seen the setting of accounting standards that began 25 years ago, at the end of all research it is concluded that the points require development and attention, in order to improve scope, relevance, reliability and under stability of the Spanish system.

Another point to be addressed in the subject of financial accounting over time is, for example, the topic of the perspective of fair value criticism in the context of financial crisis.

According to this topic it is summarized that due to the financial crisis in Spanish regulations were created on the standard issuance of fair value by agencies such as the FAS and the IAS, this was carried out in 2008, as this is known to have been in the era of global crisis.

This began in the United States with the theme of the real estate bubble, which was causing a crisis worldwide due to the high costs that the homes had in different states, in the last part it is concluded that the use of entry levels should be emphasized not observable in the determination of the fair value that derive to the complexity of inactive markets.

So also, is taken into account what is international accounting, one of the points to touch is an approach for the presentation of financial information, what this is about is that from 2008 in Venezuela began a migration towards an international model where new measures were adopted from institutions in the country.

In 2011, the NIFF was implemented for small and medium enterprises, what was done in all Venezuelan entities and different states of the country was to establish with a methodology of the state, which consisted of questionnaires to accountants of the same groups or state entities, in order to collect information on how they performed the accounts of the entities and as they looked for solutions to financial problems.