ACCOUNTING METHODOLOGY

Accounting, as a science, uses a method called accounting, which consists of four steps:

• Capturing facts with economic content that can be accounted. • Quantification of accounting facts. • Representation by recording the facts in accounting accounts (conceptual instruments) annotated in accounting books (material instruments). • Add recorded information summarized in the financial statements (annual accounts).

THE ACCOUNTS Accounts are the instruments of representation and measurement of each asset element. Each consists of a denomination and a numerical code, which uniquely identify it. These identifying elements are the representation of the reality of the heritage elements, written on a paper or in an electronic register. Therefore, there are as many accounts as assets have the company. Accounting regulation usually establishes the freedom for each entity to have the accounts to be used in its accounting process and the degree of detail of its information, although there are laws (such as France, Mexico, Spain or Peru) that establish plans or Manuals of guiding accounts to be used by companies and although the accounting legislation in terms of number and name of accounts is usually not mandatory, if it is usually used in a homogeneous way by companies from the same country. The accounting plan of a company is the codification of the set of accounts that a company uses, includes all accounts and groupings of them.