ACCOUNTING BASICS AND ELEMENTS OF FINANCIAL STATEMENTS

They are each of the assets, rights and obligations that form part of the corporate assets. The conceptual framework of the International Accounting Standards Board (IASB) defines five basic elements of accounting:

• Active • Passive • Capital / Assets • Expenses • Income

All of these must follow a logical route for proper accounting, whose steps are reflected in the financial statements:

• Definition • Recognition • Measurement

PATRIMONIAL MASSES

The assets of a company are the set of assets, rights and obligations relating to a company that constitute the economic and financial through which it can achieve its objectives. For the purposes of its valuation, the assets consist of a positive (active) part, consisting of the assets (material elements), as well as the rights (intangible elements) derived from legal relationships of the company and a negative part), formed by the obligations.

ACTIVE = PASIVE + ASSETS

Active The asset is the set of goods (material elements) and rights (intangible elements) controlled economically by the company, derived from legal relations of ownership, possession, use, credit, etc. This is divided into current, fixed and deferred.

Passive and Shareholders' Equity The liability consists of obligations to third parties, arising from the assumption of legal responsibilities to give, do or consent. It can be divided into current and non-current liabilities.